New Fidelity report flags 'stark contrast' between Bitcoin and fiat currencies
Bitcoin’s (BTC) future may “stand in stark contrast to the rest of the world,” asset manager Fidelity Investments predicts.
In a recent research piece, “The Rising Dollar and Bitcoin,” released Oct. 10, Fidelity Digital Assets, the firm’s crypto subsidiary, drew a line between Bitcoin and other currencies.
While hardly a stranger to bullish takes on Bitcoin, Fidelity continues to publicly reiterate its faith in the largest cryptocurrency despite the near year-long bear market.
In the report, analysts stated just how far Bitcoin as an asset has diverged from what is currently considered the norm. In the new high-inflation environment, Bitcoin’s fixed issuance and supply are of particular importance.
“Therefore, bitcoin may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take – namely the path of increased supply, additional currency creation, and central bank balance sheet expansion,” they explained.
Related: Bitcoin price ‘easily’ due to hit $2M in six years — Larry Lepard
While the report’s title places influence on the strength of the U.S. dollar relative to other world currencies, it was the crisis in the British pound sterling which Fidelity highlighted as the kind of event impossible on a Bitcoin standard.
Summing up, the firm forecast that “more monetary debasement may be needed to alleviate the high debt load among developed economies, while recent events in the United Kingdom have shown counterparty and liability risks in the system, making monetary intervention and doses of liquidity features that are not likely to go away any time soon.”
“Comparatively, bitcoin remains one of the few assets that does not correspond to another person’s liability, has no counterparty risk, and
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