A research paper titled ‘Bitcoin Investment Thesis: An Aspirational Store of Value’ published by Fidelity Digital Assets specified that despite having to fulfill all the criteria of a store of value, Bitcoin has not got official status.
In its report, the subsidiary of Fidelity Investments mentioned that if the Bitcoin has got the official status then it could have been used as an insurance policy against various consequences.
The paper by the Fidelity Digital Assets further stated,
“Many investors consider Bitcoin to be an aspirational store of value in that it has the properties of a store of value but has yet to be widely accepted as such.”
As suggested earlier, that Bitcoin is a store of value, therefore, it could be used in the future because the asset secures the value for a longer time period.
The Fidelity Digital Assets believes that earlier, the price volatility of Bitcoin, which is opposite to its possessed value, used to bring brings attention, development, and innovation to the digital asset.
In a recent debate with Peter Schiff, the co-founder of Morgan Creek Digital, Anthony Pompliano, claimed that the price volatility of Bitcoin could be detrimental as well as advantageous for its investors.
Fidelity notified that Bitcoin could become the store of value because of its unforgeable digital scarcity. While explaining its statement, the subsidiary of Fidelity Investment stated that Bitcoin is considered to be a deflationary asset because of its limited circulation in the market.
The research paper further stated that one reason Bitcoin has a good store of value is its scarcity .i.e., its limited number of circulation.
Additionally, it has been mentioned in the paper that presently, the low rate of interest in the traditional financial system and an unrivaled level of global monetary stimulation are causing unknown consequences, which results in increasing adoption of Bitcoin.
Articles You May Read.