“Bitcoin’s first technological breakthrough was not as a superior payment technology but as a superior form of money.”

That’s a strong statement from anyone…

But it’s all the more impactful as it comes from one of the biggest and oldest and most trusted names in finance: $11 trillion financial services titan Fidelity.

In a report published last month, the investment firm made a handful of surprisingly bullish comments on Bitcoin…

  • “Bitcoin should be considered an entry point for traditional allocators looking to gain exposure to digital assets”
  • [Bitcoin is] “the scarcest monetary asset in this emerging digital asset category”
  • “Bitcoin clearly possesses a lot of good qualities of money, combining the scarcity and durability of gold with the ease of use, storage, and transportability of fiat (even improving on it).”
  • “The first-mover advantage led to a lack of true competition for Bitcoin’s primary use case as a monetary asset and a store of value and creates a drastically different return profile for Bitcoin investors.”

In short, Fidelity views Bitcoin as being in a league of its own in the digital asset space. The main reason for its dominance is simple: it was the first crypto to gain widespread acceptance by users and investors.

In other words, Bitcoin has established itself as the preferred “store of value” in the digital asset space. The report repeatedly compares Bitcoin to gold, highlighting the limited supply (or scarcity) of both.

Fidelity also points out the incredible breakthrough that Bitcoin’s decentralized network represents: a peer-to-peer system where individuals can exchange value securely and without a third party (like a bank). 

None of this may sound groundbreaking. These observations are pretty similar to what crypto enthusiasts have been saying for years… 

The groundbreaking part is who’s saying it…

Put simply, Fidelity—which has been in business for over 70 years and handles the assets of millions of individual investors—isn’t a company that jumps into every new investment fad. It has a strong reputation to maintain… and needs to take a conservative, long-term approach with its business and advice to clients. 

Fidelity isn’t looking to be a carnival barker… And this isn’t a report full of headline-grabbing price targets. It’s a macro-overview of the crypto space… intended to educate clients about Bitcoin and other digital assets.

Looking to the future, Fidelity says it doesn’t envision the world having a single, global currency. And Bitcoin doesn’t need to overtake the U.S. dollar as the world’s reserve currency to be successful. 

More importantly, Fidelity says investors should take a two-pronged approach to the crypto space by owning Bitcoin (as the superior monetary asset in the digital asset space)… and allocating some money to other coins “for exposure to the innovation and experimentation ongoing within the ecosystem.”

The fact that Fidelity is putting out reports on Bitcoin is a strong indicator that this asset class isn’t going away. It’s changing how individuals view money and transferring value… And offering investors life-changing opportunities in the process.  

There’s a lot of noise in the crypto space—hype-fueled commentary that focuses on price predictions and uses phrases like “to the moon” to describe the future gains on certain coins…

You should ignore most of it.

But when Fidelity weighs in on an investment theme… every investor should take notice.

Daniel Creech
Daniel Creech is a Curzio Research analyst with over a decade of experience. He writes on macro trends, large- and small-cap stocks, and digital securities. He’s a regular contributor to Token Tracker, Curzio Research Advisory, and The Dollar Stock Club.

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