Fidelity Digital Assets President Tom Jessop (Tom Jessop) said that Bitcoin is not yet a true store of value because digital assets are still too volatile. However, investors are optimistic that Bitcoin will gain this status.
Jessop told Reuters’ Global Investment Outlook Summit 2020: “We use the term “potential store of value” because Bitcoin is still very unstable. From any standard, it may not be possible to achieve true The store of value.”
“But it is true, which is one of the reasons why so many investors are now constructively considering this area.”
Driven by huge institutional demand, Bitcoin (BTC) hit a record high of $19,864 on November 30. Last month, the asset rose by about 47%, and has risen by more than 400% since the crash on Black Thursday, March 12.
Institutional investors such as Microstrategy, Square, etc. have been vigorously involved in the cryptocurrency field because they firmly believe that Bitcoin (its maximum supply limit is only 21 million coins) is a safe hedging tool against currency inflation, especially when government spending is unlimited time.
But digital assets have also caused ridicule due to their volatility. For example, according to Reuters, in 2017, Bitcoin surged by about 400% in just 35 days, and then lost half of its value in 30 days. Recently, BTC lost $3,000 in value within a few minutes after a strong rebound.
However, Jessop’s comments are in stark contrast to Fidelity Digital Assets’ deep involvement in the cryptocurrency business. The company is a division of asset manager Fidelity Investments, with an asset size of US$3.3 trillion, providing cryptocurrency trading and custody services for financial companies and enterprises.
In October, Fidelity published its Bitcoin investment paper, which generally supports Bitcoin as a viable investment option. The company also extended its cryptocurrency trading and custody services to Europe and Singapore on the grounds of “strong interest”.
What do you think of the value store of Bitcoin? Let us know in the comments section below.
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