BTC is the best money globally and has no rivals in this regard. This was the conclusion of a report prepared and released by Fidelity Digital Assets on Monday (1). In the document, the manager aims to expose the positive points of BTC and also differentiate it from other cryptocurrencies.
In its review, Fidelity highlighted that BTC is a superior form of money compared to other cryptocurrencies. However, the manager said that some of its rivals are more efficient when it comes to other proposals.
New investors should invest in BTC
Fidelity’s digital assets arm produced the report with a focus on new investors. In fact, the objective is to guide those who do not yet have exposure to this market. In this regard, Fidelity advises that new investors need to value BTC separately from other digital currencies.
In Fidelity’s assessment, the market-leading cryptocurrency does not compete with ETH, Solana and other cryptocurrencies, but rather with gold and fiat currencies. In the aim of being money, BTC has no rivals among the more than 12,000 cryptocurrencies in existence.
“Other non-BTC projects should be evaluated from a different BTC perspective,” the report reads.
Of course, BTC wasn’t all praised. Fidelity stated that it cannot be considered a better payment method as other cryptocurrencies process more transactions per second. But as a store of value and monetary asset, BTC has passed the test over the years.
Therefore, BTC has a unique advantage as a digital alternative to goods like gold. For Fidelity, no cryptocurrency project currently in existence is a better monetary asset than BTC.
“BTC is fundamentally different from any other digital asset. It is unlikely that any other digital asset is better than BTC as a monetary good because BTC is the most (relative to other digital assets) secure and decentralized digital money. Any “improvement” would necessarily face exchange risks”.
Institutional gateway
In addition to extolling the qualities of BTC, Fidelity sees cryptocurrency as an excellent gateway. in the market. In this way, the manager assesses that investors who wish to expose themselves to cryptocurrencies should start with BTC.
This was the case of the US manager itself, which has more than US$ 7 trillion in assets under management. Fidelity’s first cryptocurrency investment products were precisely in the BTC market. In the last one, the company acquired 7.2% of a stake in mining company Marathon Holdings.
In November, Fidelity launched a spot BTC ETF in Canada, i.e. a fund that buys BTC directly. A request to launch the fund in the United States was filed, but was rejected in late January.
In recent times, interest in BTC has surged tremendously. Investors, including institutional and corporate clients, seek to gain exposure to this asset class as a way to hedge against inflation.
Even cities are looking to use BTC in their operations. In the US, Miami announced the conversion of 1% of the city’s treasury to BTC. Part of the city’s wages and taxes can also be paid using cryptocurrency.
