Fidelity Expects More Countries to Get Bitcoin, Citing ‘Very High-Risk Game Theory’ – Featured Bitcoin News

[ad_1]

Fidelity expects more sovereigns and even central banks to acquire Bitcoin this year. “There is very high-stakes game theory here, and if bitcoin adoption increases, countries that get some bitcoin today will be more competitive than their peers,” the company explained.

Fidelity’s Crypto Predictions

Fidelity Digital Assets, a subsidiary of Fidelity Investments, released a report earlier this month on crypto trends and their potential future impact. One of the trends discussed in the report is the adoption of cryptocurrencies by sovereign states.

“Governments around the world have made some major moves in digital assets over the past year,” Fidelity described.The report discusses countries like China that have already banned cryptocurrencies and countries like El Salvador taking the opposite approach and making Bitcoin legal tender.

“We believe that the two developments observed this year are diametrically opposed. Time will surely tell us which path is more successful,” the report authors argue. However, they point out:

An outright ban would be difficult to achieve at best and, if successful, would result in a significant loss of wealth and opportunity.

The authors continued, “We also believe that there is very high-stakes game theory here, that if Bitcoin adoption increases, countries that get some Bitcoin today will outperform their peers in the competition,” elaborating:

So even if other countries don’t believe in investment theory or adopt Bitcoin, they will be forced to buy some as a form of insurance.

“In other words, a small cost can be paid today as a hedge against potentially larger costs in the future,” Fidelity clarified. The investment firm concluded:

Therefore, we wouldn’t be surprised to see other sovereigns acquiring Bitcoin in 2022, and maybe even seeing central banks.

El Salvador President Nayib Bukele also predicted last week that two more sovereign states will adopt Bitcoin as legal tender this year. However, Devere Group CEO Nigel Green is more optimistic.He expects three other countries to adopt Bitcoin as the legal tender for this year.

tags in this story

Bitcoin adoption, Central Banks Adopt Bitcoin, countries to buy bitcoin, cryptocurrency adoption, savior, Fidelity, Fidelity Digital Assets, Fidelity Investments, Fidelity prediction, sovereign nation state, treasury

Do you agree with Fidelity? Let us know in the comments section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.




Image Source: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for reference only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned herein.



[ad_2]

Source link

Recommended For You

About the Author: AZ