Fidelity Digital Assets head of research Chris Kuiper is convinced that bitcoin should be viewed separately from other digital assets and believes it plays an exceptional role in investors’ portfolios.
Fidelity Digital Assets’ latest report, titled “Bitcoin First,” addresses two major concerns that Fidelity clients have expressed about bitcoin. The first is that customers believe that BTC will eventually be replaced by other cryptocurrencies; the second is that bitcoin has less growth potential compared to other coins.
According to Kuiper, BTC offers a unique value proposition as the most decentralized and sustainable financial network. According to the analyst, the asset represents a nonincremental innovation similar to the invention of the wheel.
“You can’t reinvent what’s already been invented in terms of the safest, most decentralized and what we think is the best monetary good in the digital asset space,” he said.
Kuiper noted that some cryptocurrencies may indeed have higher growth potential, but they are also subject to higher risks and should be considered more of a venture capital bet.
He believes that regardless of the future development of the blockchain ecosystem, bitcoin is likely to be a winner.
“At the end of the day, the value of these other tokens or projects is that they can somehow tie into bitcoin or be converted back to bitcoin,” he explained.
Kuiper believes that “winner takes all” and BTC is likely to become the protocol for creating most blockchain applications.
The analyst also noted that 13 years of BTC’s existence has significantly reduced the risks of loss-making investments in the asset. He also added that its potential could be even greater, especially if bitcoin gradually replaced gold as a means of savings.