Investors undervalue Bitcoin’s “colossal upside potential,” according to a Fidelity researcher
Fidelity Digital Asset’s Head of Research is persuaded that Bitcoin’s value proposition as a decentralised, censorship-resistant monetary network distinguishes it from other cryptocurrencies.
Chris Kuiper, Head of Research at Fidelity Digital Assets, is persuaded that Bitcoin (BTC) should be recognised as a distinct asset class from other digital assets and that it should play a unique role in investors’ portfolios.
Fidelity Digital Assets’ recent study, titled Bitcoin First, addresses two primary concerns made by Fidelity’s customers about BTC – that it would ultimately be supplanted by other cryptocurrencies and that it will retain a lesser upside potential than other coins.
Kuiper asserts that BTC provides a unique value proposition as the most decentralised and censorship-resistant monetary network. That, he believes, is an example of a non-incremental kind of innovation comparable to the development of the wheel.
“You cannot recreate the wheel in terms of the most secure, decentralised, and what we believe to be the finest monetary good in the digital asset sector,” he said.
While other cryptocurrencies, as Kuiper said, have greater upside potential, they also carry a greater risk and should be treated more as venture capital ventures.
Kuiper thinks that regardless of how the blockchain ecosystem evolves in the future, BTC is likely to emerge victoriously. Bitcoin will remain the primary “money anchor” for other digital assets in a multi-chain situation, where numerous blockchains coexist.
“At the end of the day, what gives these other tokens or projects their worth is their ability to be connected to or converted to bitcoin,” he stated.
In a winner-takes-all situation, Kuiper believes BTC would likely be the protocol of choice for the majority of blockchain applications.
Additionally, Kuiper notes that Bitcoin’s thirteen-year lifespan has greatly lowered the negative risks associated with BTC investments. On the other hand, its upside potential remains substantial, particularly if it eventually replaces gold as a store of wealth.