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10 Key Takeaways From Fidelity’s Bullish Research Report on Bitcoin.

By ssaurel | In Bitcoin We Trust | 12 Oct 2023


The arrival of these financial giants could well be the Trojan horse that accelerates the mass adoption of Bitcoin. Or not ... That's what's at stake for the future!

While everyone has been raving for months about the potential arrival of financial giants in the Bitcoin world, I'm among those warning that these giants have only one goal: to rob you of the deeper meaning of the Bitcoin revolution.

Bitcoin is here to free you from the yoke of governments, central bankers, private bankers, and financial institutions like BlackRock, Fidelity, and Co.

So, seeing these financial giants apply to the SEC for Bitcoin Spot ETFs is nothing to get excited about if you understand the why of Bitcoin. There's a real risk that these giants will become intermediaries between the people and Bitcoin, even though the very purpose of Bitcoin is to eliminate intermediaries.

I've talked about this on several occasions, notably in the following articles published in June and July 2023:

Recently, a loyal reader of the premium newsletter unsubscribed, saying he was disappointed by what was happening in the Bitcoin world, but also by my content, as it seemed to him that the Bitcoin revolution was losing its primary objective.

I found this attack interesting, but above all unfair because as I've told you repeatedly, seeing these financial giants take control of Bitcoin miners via the stock market, or of MicroStrategy via the stock market too, is a danger.

However, the fact remains that the revolution can still achieve its objectives despite the arrival of these financial giants.

It's up to Bitcoiners to make as many people as possible aware of these issues. That's what I've always tried to do. I'll continue to do so as long as the Bitcoin protocol remains true to its guarantees. For the moment, that's still the case.

So I'll continue to try to share with you what's happening block by block within this unique monetary revolution.

To prepare the general public for the arrival of these Bitcoin Spot ETFs, the media are adapting their narrative, as I told you here:

"The 180-Degree Shift in the Media Narrative on Bitcoin and Its Impact on the Environment Is Anything but a Coincidence"

Over the past few days, it's been Fidelity that has continued the offensive needed to change the narrative around Bitcoin. On October 4, 2023, Fidelity published a research report entitled “Bitcoin First Revisited. Why investors need to consider Bitcoin separately from other digital assets”.

As always, I invite you not to take my word for it on the analysis I'm about to give you in a few points of this 23-page report. Don't Trust, Verify. I therefore recommend that you read the report for yourself and share any comments you may have in the comments:

"Bitcoin First Revisited. Why investors need to consider Bitcoin separately from other digital assets"


For my part, here are the 10 important points I take away from this report:

1. Fidelity considers Bitcoin to be the Best Money

 

“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 (even improving on it).”

I have already written on the subject, I can only agree with Fidelity:

"The 6 Characteristics Defining a Real Money in Which Bitcoin Excels"


2. Fidelity highlights the “Virtuous Cycle of Bitcoin”

   

“This network competition is likely to result in a winner-take-all scenario as the network grows and becomes more valuable because the choice of any other monetary network that does not become the dominant one will result in a loss of investment or opportunity cost.”


3. Fidelity explains why Bitcoin is already the Next Bitcoin

   

“The invention of the wheel represented an entirely new technology that, once invented, could never be reinvented. Similarly, never in human history had the problem of digital scarcity and true peer-to-peer electronic cash been solved until Bitcoin was invented.”

Bitcoin is already the Next Big Thing.

I devote a whole idea to it in my book “The Truth About Bitcoin”:

The Truth About Bitcoin


4. Fidelity admits Bitcoin is anti-fragile

“Every minute, hour, day, and year that Bitcoin survives increases its chances of continuing into the future as it garners more trust and survives more shocks. This also goes hand-in-hand with the property of antifragility, where something becomes more robust or stronger with each attack or instance in which the system endures some form of stress.”

 

I'm not surprised either on this point, which I've already discussed with you.


5. Fidelity puts forward data to prove that Bitcoin is the world's most secure decentralized network

   

“Unfortunately, because of the differences in hashing algorithms, bitcoin’s hash rate can not be directly compared to the hash rate of many other digital assets. Regardless, in terms of sheer computational power required to alter the network’s consensus, bitcoin far exceeds any remaining proof-of-work competitors.”

There's Bitcoin, and that's it. There is no second best.

  Bitcoin, Because There Is No Second-Best


6. Fidelity is convinced that Bitcoin will retain its kingly position in the future due to the Blockchain Trilemma

“We also believe the Bitcoin network will continue to be the most secure and decentralized into the future due to the blockchain trilemma as outlined above and also as exemplified in a real-world example below (the block size war). We also believe that, because monetary networks have massive network effects, Bitcoin’s security and decentralization will only grow stronger over time.”


7. In terms of the market cap for decentralized systems, Bitcoin is Fidelity's only choice

“Bitcoin continues to dominate the market capitalization of all competing currency tokens.”


8. Fidelity also compares Bitcoin to the Internet

“The internet and its base layer, TCP/IP, provides the perfect example of this. The internet protocol suite known as TCP/ IP is an open-source base layer for communication to flow through and, subsequently, applications and content on top of which to be built.”

 

Owning Bitcoin is like owning the base layer of the Internet, insofar as that was ever possible.

If you've read my book “The Truth About Bitcoin”, this should sound familiar:

  The Truth About Bitcoin


9. Fidelity goes against those who find Bitcoin useless. For Fidelity, “Bitcoin is Aiming to Satisfy a Clear Market Need”

“It appears at this point that Bitcoin has found a role in the digital asset ecosystem as a scarce, store of value asset at the very least.”


10. Fidelity concludes that Bitcoin is unique and should be treated separately from all the other digital assets that have emerged since

“As a monetary good, bitcoin is unique. Therefore, not only do we believe that investors should consider bitcoin first to understand digital assets, but that bitcoin should be considered first and separate from all other digital assets that have followed it.”


Conclusion

If you're a Bitcoiner like I am, Fidelity will have done nothing but push open doors. However, we are not the target of such a research report. Fidelity has published this report for the general public. Fidelity intends to prepare for the likely arrival of its Bitcoin Spot ETF in the coming months.

Fidelity manages $4.5T in assets for its 43 million clients. That's potentially a lot of people who could be tempted to discover the world of Bitcoin through the prism of Fidelity's ETF. The same goes for BlackRock.

In each case, the challenge for the future of the Bitcoin revolution will be the same: to ensure that these people who are interested in Bitcoin end up taking the plunge by deciding to own Bitcoin directly and not via its financial giants.

If we succeed in encouraging this phenomenon, then the arrival of these financial giants in the world of Bitcoin can be seen in the future as a Trojan horse that will accelerate the mass adoption of Bitcoin. If this is not the case, we may well have to worry about the success of the Bitcoin revolution, if we are to believe its deepest intentions.

Stay strong, Stay Bitcoin HODLers.


AMA on My Perch


Don't take for granted the word of Bitcoiners who tell you that Bitcoin is an incredible monetary revolution, but verify it for yourself by developing the knowledge to build your truth about Bitcoin.

 

That's what I suggest you do in the book “The Truth About Bitcoin: Everything you need to build your truth about Bitcoin and stop trusting others without verifying.”

The book is available on various platforms:

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ssaurel
ssaurel Verified Member

Entrepreneur / Developer / Blogger / Author.


In Bitcoin We Trust
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