Investors underestimate Bitcoin's "huge upside potential", Fidelity researcher says

Chris Kuiper, Head of Research astatine Fidelity Digital Assets, is convinced that Bitcoin (BTC) should beryllium treated separately from different integer assets and believes it plays an exclusive relation successful investors’ portfolios. 

Fidelity Digital Assets' latest report, titled Bitcoin First, targets 2 main concerns that Fidelity’s clients person raised towards BTC — yet being replaced by immoderate different cryptocurrencies and little upside imaginable near compared to different coins.

According to Kuiper, BTC offers a unsocial worth proposition arsenic the astir decentralized and censorship-resistant monetary network. That, according to him, is simply a non-incremental benignant of innovation akin to the invention of the wheel.

“You can't reinvent thing that's already been invented successful presumption of the astir secure, astir decentralized and what we see arsenic the champion monetary bully successful the integer plus space,” helium said.

While different cryptocurrencies whitethorn person higher upside potential, arsenic Kuiper pointed out, they are besides subjected to higher risks and should beryllium regarded much similar task superior bets. 

Kuiper believes that careless of the aboriginal improvement of the blockchain ecosystem, BTC is apt to travel retired arsenic a winner. In a multi-chain scenario, wherever aggregate blockchains volition beryllium coexisting, Bitcoin volition beryllium inactive the main “money anchor” for different integer assets.

“At the extremity of the day, the happening that gives these different tokens oregon projects worth is that they tin someway necktie backmost to bitcoin, either beryllium converted backmost to Bitcoin,” helium explained. 

In the lawsuit of a winner-takes-all scenario, Kuiper thinks BTC volition apt beryllium the go-to protocol for gathering astir blockchain applications. 

Kuiper besides points retired that BTC's thirteen years of beingness person importantly reduced the downside risks predominantly tied to BTC investments. On the different hand, its upside imaginable whitethorn inactive beryllium significant, particularly successful lawsuit it volition gradually regenerate golden arsenic a store of value.

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