Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “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.”
Innehåll
Fidelity Says Bitcoin Could Be Portfolio Insurance
Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets.
“The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained.
För övrigt, “more monetary debasement may be needed to alleviate the high debt load among developed economies,” rapportens detaljer, adding that “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.” The firm continued:
Comparatively, bitcoin remains one of the few assets that does not correspond to another person’s liability, has no counterparty risk, and has a supply schedule that cannot be changed.
“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,” Fidelity clarified.
“While the U.S. dollar remains very strong relative to other fiat currencies, the reality of the U.S. financial system is that it is in a similar position as the U.K. in the long run,” Fidelity asserted, utarbetande:
With the high debt-to-GDP ratio it is unlikely to be equipped to handle higher real interest rates for a sustained period of time if the country aims to fulfill its current debt obligations.
Fidelity Digital Assets has been ramping up its crypto services. The firm will start offering eter (ETH) trading and custody on Oct. 28. It also recently announced the launch of an Ethereum index fund, citing client demand for exposure to digital assets beyond bitcoin.
Do you agree with Fidelity on bitcoin as portfolio insurance? Låt oss veta i kommentarsfältet nedan.
Bildkrediter: Shutterstock, Pixabay, Wiki Commons
varning: Den här artikeln är endast i informationssyfte. Det är inte ett direkt erbjudande eller uppmaning till ett erbjudande att köpa eller sälja, eller en rekommendation eller rekommendation av någon produkt, tjänster, eller företag. Bitcoin-Tidings.com ger inte investeringar, beskatta, Rättslig, eller redovisningsrådgivning. Varken företaget eller författaren ansvarar, direkt eller indirekt, för alla skador eller förluster som orsakas eller påstås vara orsakade av eller i samband med användningen av eller tilliten till något innehåll, varor eller tjänster som nämns i denna artikel.
Läsa varning