Fidelity, the multinational brokerage giant, released a paper on Bitcoin (BTC) titled Bitcoin First. The financial services provider calls for BTC to be treated separately from the rest of the digital assets.
The paper argued that BTC is fundamentally different from the hundreds of other digital assets trading in the market and no other digital asset is likely to overtake the top cryptocurrency “as a monetary good.”
Fidelity’s paper called Bitcoin a superior form of money rather than just a tech. It is the most ”secure, decentralized form of asset and any "improvement" will necessarily face tradeoffs.” The paper read:
“Bitcoin clearly possesses a lot of good qualities of money, combining the scarcity and durability of gold with the ease of use, storage and transportability of fiat.”
The global financial service provider believes BTC possesses all qualities of being a sound form of money as it doesn’t have an organization running it and it doesn’t pay a dividend or have cash flows. The scarcity and decentralized nature of Bitcoin only add to its properties of being a perfect monetary tool.
“We won’t be so bold as to predict there will only ever be one money, but we do believe that one monetary good will come to dominate the digital asset ecosystem due to the very powerful effects of networks.”
Related: Bitcoin cycle is far from over and miners are in it for the long haul: Fidelity report
Fidelity sees BTC as an entry point for traditional investors into the digital asset market and suggested that investors should incorporate two separate frameworks for investing in digital assets: One should be focused around Bitcoin as a monetary good (asset class) and the second should be focused on rest of digital assets that exhibit venture capital-like properties.
Satoshi Nakamoto, the pseudonymous creator of Bitcoin also intended it to be a sound form of money and BTC proponents have argued the same for a decade. However, the fact that a global financial service provider sees BTC as a superior form of money could be a sign of greater adoption ahead.