More than 11 years have passed since Bitcoin and thus the first blockchain worldwide saw the light of day! Today, the number 1 crypto currency shines with an ever stronger and more solid ecosystem with excellent network properties and the nickname “digital store of value”.
Bitcoin is establishing itself and many have quickly forgotten that a few years ago this was by no means a matter of course or even likely! The 11-year success story and enormous price increases also went hand in hand with a lot of incomprehension and strong initial rejection, above all. on the part of traditional institutions and financial market participants.
While some experts and analysts as well as large educational institutions such as Harvard and Yale understood and publicly proclaimed the advantages and uniqueness of Bitcoin relatively quickly, it took significantly longer on the classic financial market to reverse the negative attitude and recognize the opportunities offered by the alternative digital currency.
One of the first major financial service providers to investigate the topic intensively and then to form a well-founded, all-round positive judgment, is none other than the investment giant Fidelity Investments.
It was a bang for both the still young crypto industry and the entire financial market when the asset manager even announced a complete Bitcoin rollout worth billions at the end of 2019. A few days later, the specific message follows: Fidelity has already received a "BTC license" in the USA.
In detail, this means that the American financial services provider has received permission from the New York Department of Financial Services (NYDFS) to offer its customers trading in Bitcoin and a custody service in the future.
With this regulatory approval, Fidelity is now able to offer its platform for digital assets as a service for institutional investors (buy, sell, hold and transfer Bitcoin).
The extent of this message and how important this step actually is for the institutionalization of Bitcoin, particularly shows a look at Fidelity's status in the global economy:
The company manages assets of around 2.5 to 2.8 trillion US dollars and was named the third most influential company in the world economy in a study by ETH Zurich.
At least as important as the actual monetary involvement in the crypto market are Fidelity's extensive studies and reports, which examine Bitcoin in the depths and offer other institutions and interested parties the opportunity to get a sound, realistic impression based purely on numbers, data and facts To make bitcoin.
For example, in recent reports, Fidelity describes Bitcoin as an "emerging store of value" and points out that BTC is still in a relatively early stage of mass adoption, opening up significant profit opportunities for investors.
Fidelity explains the extreme scope for growth of Bitcoin as follows:
“An analogy is that investing in Bitcoin today is like investing in Facebook, when the company had 50 million users and had the potential to grow to the two billion users it has today.
This is powered by the idea that Bitcoin offers an asymmetrical upward trend. If Bitcoin is widely adopted as a store of value by private and institutional investors, the appreciation in value can be substantial "
A comparison with gold is also inevitable in the latest report, and so the investment giant emphasizes that Bitcoin can largely cannibalize gold as soon as the broad masses of the properties of BTC become more aware, which of course will have a dramatic effect on the price..
At the same time, the digital scarcity is also emphasized, which Fidelity sees as an absolute key characteristic for investors:
“The main characteristics mentioned in relation to a good store of value function are scarcity, transferability, durability and divisibility. The most important of these features is arguably scarcity, which is essential for long-term protection against loss of purchasing power. Scarcity means that there is a finite amount of the good. It cannot be easily created and it is impossible to forge. "
Of course, an evaluation of the famous stock-to-flow model of the Bitcoin analyst PlanB as well as the 1 million dollar forecast contained therein could not be missing. To the delight of the entire community, the investment giant comes to a positive conclusion about the usefulness and credibility of the model:
“Commodities with an inventory that is difficult to double from existing supply due to a low rate of production have historically served as superior stores of value.
Gold, the most resilient store of value over the centuries, has the highest inventory to flow ratio, followed by Bitcoin (today) and silver. After the most recent halving (May 2020), the gap between the gold and bitcoin ratios has narrowed. Bitcoin's stock-to-flow rate will overshadow that of gold after the next halving (2024). "
The next part of the series “The giants are getting in” continues excitingly, with a payment service provider that we not only know, but also probably use regularly, if not almost every day!
Blog post from January 16, 2020weiterlesen
Part 3 of the big year in review series from December 25, 2019weiterlesen
Part 1 of the big year in review series from December 11, 2019weiterlesen
Blog post from December 3, 2019weiterlesen