Fidelity Says What We’ve Been Thinking: Countries & Central Banks Will Buy BTC

Surprising the world, Fidelity predicts what Bitcoin’s game theory implies. It’s as Satoshi Nakamoto said, “It might make sense just to get some in case it catches on.” That’s the exact same conclusion that Fidelity reaches in its “Research Round-Up: 2021 Trends And Their Potential Future Impact” report. Take into account that Fidelity is a multinational financial services corporation, it doesn’t get more mainstream than this.

What did Fidelity say about Bitcoin adoption at the nation-states and central bank level? 

They put it very clearly:

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“We also think there is very high stakes game theory at play here, whereby if bitcoin adoption increases, the countries that secure some bitcoin today will be better off competitively than their peers. Therefore, even if other countries do not believe in the investment thesis or adoption of bitcoin, they will be forced to acquire some as a form of insurance. In other words, a small cost can be paid today as a hedge compared to a potentially much larger cost years in the future.” 

In other words, It might make sense just to get some in case it catches on. And, as Stacy Herbert said, “First mover advantage goes to El Salvador”. At least if we’re talking out in the open, because other countries might be accumulating Bitcoin on the down-low. For example, Venezuela seized a lot of ASICs from private miners. Chances are those are active in a warehouse somewhere. And, of course, there are rumors that the USA is already mining.

In any case, what does Fidelity conclude?

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“We therefore wouldn’t be surprised to see other sovereign nation states acquire bitcoin in 2022 and perhaps even see a central bank make an acquisition.”

If those players do it in the open, it will probably trigger a race like no other. A race in which it will be too risky not to participate. 

Speaking About Bitcoin Mining…

Fidelity’s report summarized 2021, it goes through most of the major stories that NewsBTC has covered ad nauseam. The company doesn’t try to figure out why did China ban Bitcoin mining, but it highlights how fast the hashrate recovered

“The recovery in hash rate this year was truly astounding and one that we think demonstrates several issues that will be important to keep in mind for 2022 and beyond.”

The Fidelity report also highlighted how well the network responded. “This has now been tested and bitcoin’s network performed perfectly.”

BTCUSD price chart for 01/17/2021 - TradingView

BTC price chart for 01/17/2022 on Eightcap | Source: BTC/USD on

What Does Fidelity Say About The Ecosystem In General?

The report wasn’t exclusively about Bitcoin, they also identified the biggest trends in the wide crypto sphere.

“The biggest non-Bitcoin themes put on display this past year included the massive issuance of stablecoins, the maturation of decentralized finance, and the early days of non-fungible tokens.”

And about those trends, Fidelity predicted:

  • “The growth in interconnectivity between siloed blockchains”

  • “Traditional fintech companies partnering or building capabilities to interact with DeFi protocols”

  • “The dawn of decentralized algorithmic stablecoins has officially begun.” Responding to the “growth in demand for more regulated, centralized stablecoins.”

  • “While the long-term value of these NFTs is not known, the impact of increased digital property rights for art, music, and content is likely to be meaningful in some form.”

In general, Fidelity thinks that investment in digital assets will keep growing:

“Allocating to digital assets has become far more normalized over the past two years for all investors. The Fidelity Digital Assets 2021 Institutional Investor Survey found that 71% of U.S. and European institutional investors surveyed intend to allocate to digital assets in the future. This number has grown across each individual region of the survey for the past three years, and we expect 2022 to show another year of higher current and future asset allocations to digital assets amongst institutions.” 

However, something has to happen to catalyze widespread institutional adoption. “The key to allowing traditional allocators to continue to pour capital into the digital asset ecosystem revolves around regulatory clarity and accessibility.”

Is 2022 the year of regulatory clarity? What will happen first, institutional adoption of cryptocurrencies or nation-states adoption of Bitcoin? What central bank will earn first-mover advantage? Burning questions for the year ahead.

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Kaspersky Experts Assess The Biggest Cyberthreats In Crypto For 2022

Don’t read this Kaspersky report if you’re prone to paranoia. The cybersecurity experts and antivirus manufacturers released its annual “Cyberthreats to financial organizations” paper and two items are about cryptocurrencies. Prepare to be spooked. The report begins with an evaluation of last year’s predictions and they were only wrong about one, and not by much. Plus, this year’s cyberthreats sound very much like a possibility. Luckily, you found this article and can prepare yourself accordingly. 

Related Reading | Hackers Nab $16 Million In BTC Through Bitcoin Wallet Exploit

Both Cybercriminals And State-Sponsored Actors Will Target Cryptocurrencies

First, Kaspersky paints the picture and gives us the least scary threat:

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“The cryptocurrency business continues to grow, and people continue to invest their money in this market because it’s a digital asset and all transactions occur online. It also offers anonymity to users. These are attractive aspects that cybercrime groups will be unable to resist.”

And then, Kaspersky makes our skin crawl:

“And not only cybercrime groups but also state-sponsored groups who have already started targeting this industry.”

As the honeypot grows, criminals will be increasingly attracted to cryptocurrencies. That much we can deal with. However, the state-sponsored groups are also a logical progression. How could they not target cryptocurrencies? And they’re going to use much more sophisticated methods to get at you. For example:

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The people behind Pokémon GO recently partnered with Bitcoin rewards card Fold App to make a Bitcoin-themed Pokémon GO clone that pays in BTC. We have no idea if what this Twitter user says holds any water, but the whole enterprise does sound suspicious. And in light of this prediction by Kaspersky, even more so.

However, just to be clear, NewsBTC knows nothing about Niantic Labs and the Fold App. Do your own research.

BTCUSD price chart for 11/26/2021 - TradingView

BTC price chart for 11/26/2021 on Oanda | Source: BTC/USD on

Manufacturing Fake Devices With Backdoors

Once again, Kaspersky makes us rethink our security methods:

“While some people consider it risky to invest in cryptocurrencies, those who do realize that their wallet is the weakest link. While most infostealers can easily steal a locally stored wallet, a cloud-based one is also susceptible to attacks with the risk of losing funds. Then there are hardware-based cryptocurrencies wallets. But the question is, are there sufficiently reliable and transparent security assessments to prove that they are safe?”

However, their prediction is much more concerning:

“In the scramble for cryptocurrency investment opportunities, we believe that cybercriminals will take advantage of fabricating and selling rogue devices with backdoors, followed by social engineering campaigns and other methods to steal victims’ financial assets.”

There are already horror stories about dubious software wallets that end up in lost funds. And yeah, fake hardware wallets seem to be a logical next frontier. Just this year, following the Ledger hack, reports of weird-looking Ledger wallets took over the Internet. However, if a more sophisticated criminal made a better-looking device, it could wreak havoc through the cryptocurrency community.

And if Kaspersky says it will happen…

Related Reading | DeFi Hack: Vee Finance Losses $35 Million To Hackers Following Mainnet Launch

Kaspersky Identifies Even More Cyberthreats

The “Cyberthreats to financial organizations” contains a few more items that aren’t fully related to cryptocurrencies, but may be of interest to all of you. They predict “an exponential growth in infostealers,” and a rise in ransomware from “small regionally derived groups.” Plus, data breaches in Open Banking, Mobile Banking Trojans, and identify risk in remote workers using company equipment for entertainment purposes. Read the whole thing and be prepared for everything.

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