Fidelity believes that Bitcoin Adoption will keep on accelerating saying ‘We’ve reached a tipping point’
Fidelity’s head of digital assets states that Bitcoin adoption will continue “at an accelerated pace,” noting that “we’ve reached a tipping point.” He elaborated that investors are increasingly drawn into bitcoin “Particularly, in an environment where we’ve seen unprecedented monetary and fiscal stimulus from central banks and governments in response to the pandemic.”
Bitcoin Adoption’s Tipping Point
The president of Fidelity Digital Assets at Fidelity Investments, Tom Jessop, discussed Bitcoin adoption last Wednesday in an interview at Marketwatch and Barron’s “Investing in Crypto” event. Jessop is also the head of Corporate Business Development for Fidelity Investments.
The Fidelity executive states that the maturation and adoption of bitcoin as an investment class “will continue at a rapid pace in the coming years,” Marketwatch detailed, continuing that this suggests that cryptocurrency may have turned a corner in traditional finance circles.
He was quoted as saying:
“I think we continue to see adoption at an accelerated pace for a host of reasons.”
The head of the digital assets at Fidelity has previously talked about the bitcoin market developing even more. “There’s more liquidity. Volatility is down about 50% from where it was in 2017. So … we believe, that the composition of this investor base, what’s driving the market higher today, is fundamentally different than what we saw three years ago,” he stated last January.
Last Wednesday, Jessop further explained why the investors are increasingly drawn to bitcoin, citing factors like the ultralow interest rates and an environment stimulated by the easy-money policies.
“I think you’ve had the accumulated experience of now roughly 12 years of the bitcoin blockchain being operative since the genesis block in early 2009. And the pandemic, quite frankly, was a catalyst for institutional adoption, and specifically bitcoin and the narrative, or use-case, around digital gold,” Jessop detailed.
The executive further elaborated, “Particularly, in an environment where we’ve seen unprecedented monetary and fiscal stimulus from central banks and governments in response to the pandemic,” adding:
“I think we’ve reached a tipping point … We’re not going to get out of this stimulated environment anytime soon.”
Jessop is not the only finance executive who is believing that bitcoin has reached a tipping point. Mike Novogratz, CEO of Galaxy Digital, stated last month that “Bitcoin adoption has hit a tipping point and investors don’t want to sit on the sidelines.” His comment then followed the approval of some bitcoin exchange-traded funds (ETFs) in Canada. In the meantime, investment bank Goldman Sachs also sees the bitcoin market becoming even more mature.
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