Surprising the world, Fidelity predicts what Bitcoin’s game theory implies. It’s as Satoshi Nakamoto said, “It might make sense just to get some in case it catches on.” That’s the exact same conclusion that Fidelity reaches in its “Research Roundup: The 2021 Trends and Their Future Potential Impact” report. Take into account that Fidelity is a multinational financial services corporation, it doesn’t get more mainstream than this.
— Alex Gladstein 🌋 ⚡ (@gladstein) January 13, 2022
Fidelity’s comments on Bitcoin adoption in the country-states, central banks and nation-states.
It was very clear:
“We also think there is very high stakes game theory at play here, whereby if bitcoin adoption increases, the countries that secure some bitcoin today will be better off competitively than their peers. Even if countries don’t believe in bitcoin adoption or the investment thesis, it will force them to purchase some of this insurance. In other words, a small cost can be paid today as a hedge compared to a potentially much larger cost years in the future.”
So, in other words: It may make sense to buy some just so it can catch on. And, as Stacy Herbert said, “First mover advantage goes to El Salvador”. At least if we’re talking out in the open, because other countries might be accumulating Bitcoin on the down-low. Venezuela, for example, seized many ASICs that were being mined by private miners. There is a good chance that they are in use somewhere. Of course there is also the possibility of rIt is believed that America has already begun to mine..
Fidelity, one of the largest asset managers worldwide, is Fidelity.
They understand what ID-10ts don’t.
Advantage to the first mover🇸🇻
Fifa is dead, it’s time to move on #bitcoin
— Stacy Herbert 🇸🇻 (@stacyherbert) January 13, 2022
Fidelity is what?
“We therefore wouldn’t be surprised to see other sovereign nation states acquire bitcoin in 2022 and perhaps even see a central bank make an acquisition.”
It will likely trigger an unprecedented race if the players participate in it openly. This race will prove too dangerous not to take part.
Speaking About Bitcoin Mining…
Fidelity’s report summarized 2021, it goes through most of the major stories that NewsBTC has covered ad nauseam. The company doesn’t try to figure out why did China ban Bitcoin miningHowever, it emphasizes How fast was the hashrate restored.
“The recovery in hash rate this year was truly astounding and one that we think demonstrates several issues that will be important to keep in mind for 2022 and beyond.”
Fidelity also noted how responsive the network was. “This has now been tested and bitcoin’s network performed perfectly.”
BTC price chart 01/17/2022 at Eightcap. Source: BTC/USD tradingview.com| Source: BTC/USD on TradingView.com
What does Fidelity say about the Ecosystem in general?
The report wasn’t exclusively about Bitcoin, they also identified the biggest trends in the wide crypto sphere.
“The biggest non-Bitcoin themes put on display this past year included the massive issuance of stablecoins, the maturation of decentralized finance, and the early days of non-fungible tokens.”
Fidelity even predicted the following trends.
“The growth in interconnectivity between siloed blockchains”
“Traditional fintech companies partnering or building capabilities to interact with DeFi protocols”
“The dawn of decentralized algorithmic stablecoins has officially begun.” Responding to the “growth in demand for more regulated, centralized stablecoins.”
“While the long-term value of these NFTs is not known, the impact of increased digital property rights for art, music, and content is likely to be meaningful in some form.”
Fidelity believes that investments in digital assets will continue to grow.
“Allocating to digital assets has become far more normalized over the past two years for all investors. Institutional Investor Survey – Fidelity Digital Assets 2021The survey found that 71% U.S. institutional investors and European institutional investors intend to allocate future funds to digital assets. This number has grown across each individual region of the survey for the past three years, and we expect 2022 to show another year of higher current and future asset allocations to digital assets amongst institutions.”
But, institutional adoption must become widespread. “The key to allowing traditional allocators to continue to pour capital into the digital asset ecosystem revolves around regulatory clarity and accessibility.”
Are 2022 and 2122 years of regulation clarity? Is it institutional adoption of cryptocurrency or national adoption of Bitcoin that will take place first? What central bank will have the advantage of being first to move? The year ahead will bring forth many burning questions.
Damir Spanic, Charts by TradingView Featured Image| Charts by TradingView