Fidelity executive calls Bitcoin “exponential gold” – DiarioBitcoin

After specifying that the network Bitcoin has not experienced growth that goes hand in hand with the increase in prices, the executive of Fidelity He highlighted that the behavior reinforces the perspective of the digital currency as a valuable asset.

***

• For an executive Fidelity, Bitcoin Figure as “exponential gold”
• He alleges that the digital currency has seen a large price increase, which does not go hand in hand with the growth of the network
• This points to the fact that Bitcoin It is consolidating itself as a valuable asset, but requires a greater number of use cases
• Part of this is due to ETFs Bitcoin cash, which attract institutional investors to this market

The global macro director for Fidelity InvestmentsJurrien Timmer, assured that the adoption Bitcoin has slowed down, but this does not mean that the digital currency is “exponential gold” which works very well as a store of value.

Bitcoin like exponential gold

According to a report carried out by the media Coinpaprika, Timmer believes that the network Bitcoin has not been able to keep up with the increase in prices, so there is less activity than expected while the digital currency hovers around USD $70,000 amid strong volatility. This implies that the cryptocurrency Blockchain has not grown as much, which could also be associated with a slowdown in adoption.

Regarding this reading, Timmer compared the growth of the networks of Bitcoin and Ethereum with important technological advances in history. In this sense, the Blockchain of the main digital currency describes a power curve “with prices fluctuating around them, leading to a unique cycle of boom and bust.”

Therefore, he considers that for there to be greater adoption, followed by higher price consolidation, the network Bitcoin should experience greater growth, although this does not mean that its price cannot grow further. The director of Fidelity He pointed out the importance of institutional investment, which further deepens the aforementioned gap, further consolidating BTC as “exponential gold”, That is to say, a reserve asset that sees enormous utility in this sense for this moment.

The ETF Momentum Bitcoin

The price of Bitcoin has been greatly supported in recent months by the arrival of exchange-traded funds (ETFs) based on the leading digital currency.

Although these days, after the fall in prices in the market, the ETFs Bitcoin They are recording departures, data published by the site Farside Investors They highlight that these products in the US stock market have capitalized total balances in income of more than USD $15,296 million, making the following considerations:

• 9 of the 11 ETFs Bitcoin To date, they have a positive balance of income of USD $33,453 million.
• The ETF Bitcoin managed by Grayscale accumulates a negative balance of USD $18,155 million alone.
• Of the products with positive balances, the BlackRock, which has more than USD $17,640 million in revenue.
• This same fund currently manages about 305,568 BTC.
• The ETF follows Bitcoin of fidelity, with USD $9,503 million in revenue.

The demand for ETFs Bitcoin is shortening the available supply in the main markets, which translates into a lack of liquidity that drives up the price of the main digital currency, this without taking into account the usual behavior of the crypto markets where large commercial volumes occur between exchanges. most reputable.

At the time of editing, Bitcoin It is quoted at about USD $66,466 per unit, a figure that represents a drop of 0.4% in the last 24 hours.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.