Fidelity Reiterates Bitcoin’s Unique Value as a Primary Investment Choice

Identifying assets with enduring value remains a pivotal concern for investors. Recently, Fidelity Digital Assets shed light on the distinct stature Bitcoin holds among digital assets, endorsing it as a primary consideration for investors. This narrative was further propagated by MicroStrategy’s Founder and Chairman, Michael Saylor, who shared Fidelity’s insights on Twitter on October 10, 2023, garnering over 300K views.

Bitcoin’s Distinguished Attributes Unveiled

A research study issued on October 4, 2023, by Chris Kuiper and Jack Neureuter under the banner of Fidelity Digital Assets, revisited the intrinsic characteristics that set Bitcoin apart from other digital assets. Titled “Bitcoin First Revisited: Why investors need to consider bitcoin separately from other digital assets,” the study builds on an initial analysis from January 2022. Over the span of a year and a half, Bitcoin has not only sustained its unique attributes but has witnessed an upward trajectory in adoption and market share, even as other digital assets encountered headwinds.

Positioning Bitcoin as a Monetary Good

The crux of the study hinged on recognizing Bitcoin as a monetary good, distinctly different from other digital assets due to its secure, decentralized nature, and sound digital money qualities. The authors assert that the prospect of any digital asset surpassing Bitcoin in these aspects is slim, as any such “improvement” would entail trade-offs. They propose that Bitcoin should be the introductory route for traditional allocators looking to delve into the digital asset space, emphasizing the need for separate evaluation frameworks for Bitcoin and other digital assets.

Fidelity’s Expanding Footprint in Bitcoin and ETF

Fidelity has been extending its stride into the Bitcoin realm through ETFs and other products, embodying its acknowledgment of Bitcoin’s unique value proposition. As of October 2023, Fidelity Investments offers a compact selection of 58 ETFs in the U.S., some of which provide exposure to the digital asset market, including Bitcoin. These offerings are a testament to Fidelity’s growing commitment to providing diversified investment avenues in the digital asset spectrum. The total assets under Fidelity’s ETFs amount to $36.24 billion as of October 7, 2023, showcasing the substantial footprint Fidelity has in the ETF domain.

Unpacking the Implications for Investors

Fidelity’s publication elucidates that the thriving nature of Bitcoin doesn’t spell doom for other digital assets; the broader digital asset ecosystem can cater to diverse needs and problem-solving avenues that Bitcoin doesn’t address. Yet, when it comes to serving as a reliable store of value in an increasingly digital world, Bitcoin’s position remains unrivaled. The insights furnished by Fidelity Digital Assets are poised to equip investors with a nuanced perspective, underlining the imperative of distinguishing between Bitcoin and other digital assets when orchestrating investment strategies.

The study thus serves as a cornerstone for shaping informed investment decisions in the digital asset spectrum, reinforcing the unparalleled value proposition Bitcoin brings to the table.

Image source: Shutterstock


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More billionaires turning to crypto on fiat inflation fears

Previously anti-crypto investors are increasingly turning to Bitcoin and its brethren as a hedge against fiat currency inflation concerns.

One example is Hungarian-born billionaire Thomas Peterffy who, in a Jan. 1 Bloomberg report, said that it would be prudent to have 2-3% of one’s portfolio in crypto assets just in case fiat “goes to hell”. He is reportedly worth $25 billion.

Peterffy’s firm, Interactive Brokers Group Inc., announced that it would be offering crypto trading to its clients in mid-2020 following increased demand for the asset class. The company currently offers Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, but will be expanding that selection by another 5-10 coins this month.

Peterffy, who holds an undisclosed amount of crypto himself, said that it is possible that digital assets could reap “extraordinary returns” even if some could also go to zero according to Bloomberg. “I think it can go to zero, and I think it can go to a million dollars,” he added before stating “I have no idea.”

In early December, the billionaire predicted that Bitcoin could spike as high as $100,000 before markets begin to retreat.

Related: Tom Peterffy Believes Bitcoin Could Wreck Might Go to $100K Before Crashing

Bridgewater Associates founder Ray Dalio is another renowned billionaire that revealed his portfolio contained some Bitcoin and Ethereum last year. This revelation came just a few months after he questioned crypto’s properties as a store of value.

He has now changed that stance and views crypto asset investments as “alternative money” in a world where “cash is trash’’ with inflation eroding purchasing power.

In late December, Dalio commented that he was impressed at how crypto as lasted, before stating “Cash, which most investors think is the safest investment is, I think, the worst investment.”

Billionaire hedge fund manager Paul Tudor Jones also bought Bitcoin last year, labeling the move as a hedge against inflation.

Pandemic-induced stimulus packages have caused economic turmoil across the globe, the fallout from which could linger for decades. In the United States, inflation is at a 4 decade high of 6.8%. This has resulted in a surge in the Consumer Price Index (CPI) as the costs of daily goods continue to increase.

The billionaires are already seeing the danger signs with fiat currencies and central bank manipulation, and they are increasingly turning to crypto assets. The year 2022 could see more wealthy investors join their ranks if the trend continues.


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Lightning Speed: Eight Mind-blowing Facts About The Lightning Network

Welcome to “Lightning Speed,” a new section in which NewsBTC will explore the possibilities that Bitcoin’s Lightning Network opens. In this first edition, we will focus on Peter St Onge’s “The Lightning Network is About to Change the World” article. According to his bio, the academic “holds a Ph.D. in Economics from George Mason University, and a B.A. in Economics and Political Science from McGill University.” Make of that what you will. 

St Onge was at the Free State Project’s annual Porcfest in New Hampshire when he had an epiphany. “The Lightning Network is now moving Bitcoin exponentially closer to becoming a true universal medium of exchange that is controlled by the people, not by governments.” That’s right. Bitcoin already won the store of value race, but, with the Lightning Network, it becomes the apex medium of exchange. What does this mean for the world?

Lightning At The Porcfest

Before we blow minds, let’s explore the Free State Project’s Porcfest real quick. St Onge sets the stage:

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“As we enjoyed the mild New Hampshire summer, people wandered over to buy $2 sodas with Bitcoin, paying instantly and with zero transaction fee. I watched patient bitcoiners onboard Lightning newbies, taking them from zero to a Lightning wallet full of fresh hot sats in literally 5 minutes. It was the iconic “buy a coffee with Bitcoin” on steroids.”

This was before everybody and their grandmothers went to Bitcoin Beach to test the Lightning Network first hand. Watching the transaction’s speed and comfort, St Onge knew. This was “Confirmation that the Bitcoin developer ecosystem has now built the holy grail: Bitcoin as a true medium of exchange. One where transfers are instant, essentially free, and as easy to use as the simplest app on your phone.”

St Onge’s Four Insights About The LN As A Medium Of Exchange

  • The fees are really that cheap. St Onge recalls, “our sats party replicated what’s now going on across the world. Just last week at El Salvador’s now-famous Bitcoin Beach, 20,000 near-instant transactions went around with aggregate fees of $4.98. One-fortieth of a penny per transaction.” 
  • Traditional banking can’t compete. “For perspective, that’s about 500 times cheaper than the credit card fee on a $5 cappucino, and it’s at least 4,000 times cheaper than the average credit card transaction fee.”
  • It gets better. The fees are not correlated to the transaction’s total amount. “Note, 1/40 of a penny would cover essentially any amount — you could buy a house with Lightning for 1/40 penny.” 
  • The Lightning Network doesn’t sleep. “It transfers instantly, 24/7 including holidays, and is able to leap national borders and regulatory gatekeepers with zero effort.”

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St Onge’s Four Insights About The Lightning Network’s Growth & Potential

  • The network is growing exponentially. “Lightning Network statistics have exploded since May, with network capacity now expanding by an annualized 635%. As these new Lightning apps onboard millions of people, they then pass along and train newbies by word-of-mouth, creating exponential growth that can very quickly go from irrelevant to dominant.” 
  • The project has been years in the making. “The original Lightning Network White Paper came out in 2015, and after heady growth through 2019, the Network was essentially moribund these past 2 years.”
  • Most altcoins are no longer needed. “First, it knocks the legs out of competing “medium of exchange” (MOE) coins like Dogecoin, Bcash, Ripple, Litecoin, or their many knock-offs.” 
  • This is just the beginning. “Just as the internet needed user-friendly interfaces (web browsers) before it could really change the world, Bitcoin needed user-friendly interfaces to grow beyond money and towards being the base layer — the “rails” — for decentralized services built on Bitcoin alone.”

The Lightning Network is changing the world already. NewsBTC created “Lightning Speed” because of that fact, a feature about the possibilities that Bitcoin’s Lightning Network opens.

Featured Image: jplenio on Pixabay | Charts by TradingView


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Valkyrie Investments CEO On Bitcoin: “Absolutely A Digital Store Of Value”

Leah Wald discussed Bitcoin on Monday, saying it is “one of the strongest monetary networks.”

  • Valkyrie Investments CEO Leah Wald said that she doesn’t think that BTC is fool’s gold, unlike the JPMorgan CEO. “I think it is a wonderful digital gold and has done a brilliant job of nailing that store of value narrative.”
  • Wald added that although Bitcoin is still in its early stages, “it is establishing itself as one of the strongest monetary networks and absolutely a digital store of value.”
  • When it comes to a digital dollar, her opinion is that it would “solidify and strengthen the case for bitcoin.”

On Monday, Valkyrie Investments CEO Leah Wald was interviewed on Bloomberg Quicktake. She discussed the bitcoin price, which at the time was hovering around $48,000, and shared her thoughts on JPMorgan CEO Jamie Dimon’s opinion that “Bitcoin is “fool’s gold.”

“If bitcoin can push past $50,000 and maintain this price we do expect this bull run to take it to near highs during the fourth quarter,” Wald said. “I’m very excited for October; I’m excited for Q4.”

Her predictions have materialized so far. After jumping past $50,000 on Tuesday, bitcoin climbed as high as $55,000 today as around $27 million of BTC futures shorts were liquidated.

Wald also refuted Dimon’s claims that bitcoin has no intrinsic value and is “a little bit of fool’s gold.”

“I obviously don’t think that it is fool’s gold,” Wald asserted. “I think it is a wonderful digital gold and has done a brilliant job of nailing that store of value narrative.”

“I think we are still in a collectibles phase,” she added. “But little by little it is establishing itself as one of the strongest monetary networks and absolutely a digital store of value.”

The head of Valkyrie Investments also commented on the recent movements of the Federal Reserve in regards to a central bank digital currency (CBDC). She expects the organization to begin reviewing the pros and cons of a CBDC in the U.S. soon and seek public comments on the digital dollar.

When asked what the impact of a digital dollar would be on the Bitcoin price, Wald shared that she thinks the outcome would be very bullish.

“I personally think that [a digital dollar] would solidify and strengthen the case for bitcoin.”


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Bitcoin Is The Only Asset To Solve The Store Of Value Problem

After digesting the piece entitled, “How Bitcoin Solves the Store of Value Problem” by @Mind/Matter published in Bitcoin Magazine on August 1, 2021, I found myself unsatiated. Although in firm agreement with the central premise of the piece, namely that bitcoin performs the store of value role better than any other major asset, more could be said about the relative flaws of other assets — many of them fatal — in comparison to bitcoin. In the following series of articles, I will elucidate the relative unattractiveness of (i) equities, (ii) fixed income securities, (iii) commodities and (iv) venture capital. My writing and perspective is informed by my upbringing as a common man (blue collar worker, pleb), which is consequential because the common man is crying out for a store of value to preserve their labor at a time when the financial establishment has turned its back. Bitcoin addresses this need far better than any existing alternative and is the only asset that does not represent a wealth transfer from the common man to pre-existing financial elites.


The trading of corporate equity or common stock has dramatically increased in popularity since the imposition of government lockdowns. With the advent of no-commission online brokerages, stock trading is more accessible to the common man than ever before. Despite their popularity, misconceptions abound about what a “stonk” actually represents. Socrates said that the beginning of wisdom starts by calling things what they truly are, and so I’ll attempt to define a stock. The most unsophisticated apes among us view a stock as the “digital representation of a business.” They’re a few capitalized letters on a screen, with the general understanding that if a business experiences a favorable event or the expectation of one, the letters on their screen will increase in value and vice-versa. There is a mid-wit heuristic that characterizes equities as “fractional ownership shares of the post-tax cash flows of a business,” a definition that is admittedly more accurate but potentially more ruinous. As amusing as it is to invoke our inner Warren Buffet, we lack his 12-figure float and, more importantly, ignore all of the ways post-tax cash flows can be manipulated or misallocated, leaving shareholders with zilch.

My definition of an equity is simpler and captures some of the risks conveniently forgotten by other definitions. A common stock is a residual ownership claim on a business. Residual because each enterprise is composed of a hierarchy of claims, with stonks sitting at the absolute bottom of the ladder. A stylized version of this ladder of value could be (i) bank lenders at the top and entitled to interest associated with their loans, as well as the right to repossess and sell certain assets (think machines or IP), followed by (ii) unsecured bondholders who are entitled to interest and, in the event of a liquidation, are second in line after the bank lenders have been made whole, and finally (iii) stockholders who only have a claim to whatever value — if any — is left. In many cases, the excess value is in fact negative, and blue collar workers are misled into plowing their hard-earned after-tax dollars into a surefire loss over the long run (this is sanctioned by the SEC; sorry, they don’t care. Caveat emptor).

Consider a not-so-atypical enterprise with $10 billion of debt, a $3 billion market capitalization (value of all its stonks) and $100 million in cash. Now assume its debt is trading at 50 cents on the dollar. The entire enterprise is worth $7.9 billion (50% of $10 billion plus $3 billion minus $100 million). The bond holders are owed $10 billion, yet the company only has $100 million in cash and a total value of $7.9 billion. Unless the company can refinance under favorable terms, it’s likely the bondholders will not be fully repaid and the stock is worth negative $2.1 billion at most.

What do you get when you combine a negative equity value with share prices that are constrained by a zero lower bound (the stock prices on your screen can’t trade below $0)? If you guessed volatility, you would be correct. A trader’s paradise. Like flies to guano, the newsletter shills, YouTube frauds and Twitter talking heads descend with pre-loaded bags in search of speculators to dump on. In an attempt to generate exit liquidity, they craft tales of an imminent pump. Their stories are simple and consist of a possible short squeeze, hopes of mean reversion or last-minute rescue financing. The pump is self-created; they sell while simultaneously explaining that “this is just the first leg of a run” and the suckers are left holding the bag. Without the debt overhang, this situation would have been impossible (see Hertz and soon to be AMC as relevant examples). As a common stockholder, you willingly accept almost zero rights to influence the actions of a company. If your CFO decides to issue more debt to chase a moon-shot project while impairing the value of your equity, there is little to nothing you can do.

All stockholders rely on management teams they often know little about without appreciating how divergent their incentives can be. Corporate CEOs are fully aware that their career lifespans are similar to those of NFL wide receivers or Goldman Sachs Partners: two to three years to do something or they are replaced. How do those incentives align with low-time preference shareholders who are thinking in 10-year increments? CEOs know that they will be well compensated if their risky maneuvers seem to have worked in the short term and will be long gone when the consequences of their actions manifest themselves. The suckers, more commonly referred to as shareholders, suffer the consequences. The range of value-destructive behaviors that management teams can engage in is almost limitless: executing a merger by overpaying for the target, expanding into risky new markets or product areas, hiring costly consultants or paying exorbitant management bonuses and the possibilities continue indefinitely. What happens when you combine relatively short intervals of bad incentives over the long term? Ten-year returns that seem more like altcoin charts. Deutsche Bank, once one of the world’s most venerable financial institutions has a 10-year return of approximately negative 60%. General Electric, the industrial powerhouse responsible for electrifying the United States, producing most of the MRI machines used across hospitals and manufacturing the jet engines we fly in, has a 10-year return of negative 15%.These returns are even more abysmal when inflation is taken into account.

Bitcoin Fixes This

Bitcoin removes the agency problem associated with storing value. The ability to store value without having to grapple with the risk of value-destructive management is a multi-trillion dollar total addressable market in itself. Most of General Electric’s shareholders simply wanted to store value over the long term, but if they understood the dynamics of the steam boiler power generation market, the nuances of the oilfield services sector or the complicated cross-holding structure of GE, they would have likely fared better. The structural failures of the equity market force savers to become experts in esoteric topics while attempting to store value. Put simply, Bitcoin fixes this.

Common stock issuance is in no way supply constrained. An asset’s ability to perform the store of value function is derived from certainty. As previously defined, a stock is a residual claim that can be subdivided infinitely. The marginal cost of issuing a stock is close to zero and supply is highly elastic. If a CFO feels his company’s stock price is overvalued, he will either monetize that premium by issuing new shares for cash or use those shares to buy assets the company may or may not need; new talent is lured with stock-based compensation while new companies can be acquired via stock trades. Share prices typically decline with these announcements because pre-existing stockholders now own a smaller percentage of the company. The only certainty you have as a stockholder is that your welfare is considered last and the rules of the game will keep changing. Salability through time is an impossibility with an ever-changing rule set. When purchasing a single Bitcoin, a holder has the certainty of owning one twenty one millionth of a monetary network for the indefinite future — a level of certainty that could never be replicated by any stock.

Stocks can only be held in the fully KYC’d accounts of retail brokerages, like Robinhood. When purchasing a share of Apple on Robinhood, your name is not even added to the stock certificate. You merely are the beneficial owner of a Robinhood account with shares “in street name,” i.e. held by Robinhood. Robinhood-like brokerages sometimes lend the shares in your account to short sellers in exchange for fees that are oftentimes material. Typically, account holders don’t receive any share of these fees. You cannot transfer your shares to anyone else, sell them outside of trading hours or leverage them as collateral. To refer to this arrangement as “ownership” stretches the definition of the term. I failed to mention that when the hypothetical share of Apple was purchased, Robinhood auctioned off your order to the highest bidding high frequency trader.

With these facts, the Gamestop debacle can be rationalized and serves as a metaphor for the wider stock market. Our leaders will fight for your right to pay their donors high fees, but be keen to remember your place. The rules that secure your place at the bottom of the food chain are of less importance than you remaining at the bottom, and the rules can be changed to assure it. Bitcoin introduces the concept of radical self ownership, where the rules are consistent for all participants of the network — a true meritocracy.

In conclusion, as the dollar slowly but surely implodes, stocks have become de facto stores of value, even though they are ill-suited to the role. Most stocks are lowtime preference distractions with the explicit purpose of enriching everyone in the value chain except you. By speculating on stock price movements, you are engaging in a negative expected value game with enormously more ways to lose than win. Without a wealth of specialized sector or company knowledge, you are wasting both your capital and time, which are one in the same.

Stop wasting time and buy bitcoin. Your future self will thank you.

In my next piece I will discuss the flaws of the bond market.


This is a guest post by Joao de Oliveira Salazar. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.


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Peter Schiff wins debate over whether gold is a better store of value than BTC

Gold proponent and crypto skeptic Peter Schiff has been crowned the winner of a debate on whether gold is a superior store of value to Bitcoin.

Schiff was facing off against Skybridge founder and former politician Anthony Scaramucci in a debate hosted by Intelligence Squared on Aug 25.

Before the gold vs Bitcoin debate began, a poll scored 38% of the online audience in favor of the precious metal, 26% for BTC and 35% as undecided. Schiff was able to swing a significant number to the precious metal by the end, with final results tallying in at 51% for gold, 32% for BTC and 17% undecided.

Scaramucci kicked things off by asserting that BTC’s value is derived from its network which enables peer-to-peer transactions without a third party. He also suggested that BTC has an edge over gold because of its scarcity and digital properties:

“I think this cryptocurrency revolution and Bitcoin specifically, because of its scarcity, is going to transcend gold. It’s more portable, it’s impregnable in terms of the transaction over the blockchain […] and it’s being adopted quite rapidly.”

“A result of which the prices are going to go a lot higher,” he added.

In response, Schiff said that “in reality, Bitcoin and gold have absolutely nothing in common” as he argued that Bitcoin is marketed like gold, but doesn’t possess any of the “metallic properties,“ that gives gold value.

“Part of the marketing fraud is to try to portray Bitcoin as gold, gold 2.0, digital gold. I mean Bitcoin itself is always displayed as a coin, and the color is gold, and you put like a “B” on it. But it’s not a coin, it’s just a digital string of numbers, it doesn’t have any substance,” he said.

He argued that there is a difference between “price and value”, with gold’s value being determined by real-world use cases, while BTC doesn’t have tangible backing in the real world:

“In 100 years, in a 1,000 years, the gold that I’m storing today can be melted down and used in electronics or used in jewelry, or for whatever new uses have been invented that don’t even exist today.”

Throughout the debate, the crypto skeptic described BTC as a “Ponzi scheme,” a “giant pump and dump” and “tulip mania.” Schiff is also unfazed by the rising price of the asset, as he believes that late adopters of BTC are being gradually dumped on by whales who got in early.

“In my mind it is a giant pump and dump, where the guys that got in relatively early […] are constantly trying to pump up the market in order to generate a lot of enthusiasm and momentum and FOMO so that they can sell out gradually into this market that they are creating,” he said.

Related: Analysts say Bitcoin price pullback and profit-taking at $50K ‘was expected’

Scaramucci reiterated that the value of BTC is tied to its global network, and that digitization in the next stage of humanity as “software is eating the world.” Schiff stated he would only change his mind if BTC was backed by gold, and was actually used as a currency as opposed to being traded primarily.

In celebration of his win, Schiff called out BTC proponent and MicroStrategy CEO Michael Saylor in jest:

“I just gotta say one thing. Michael Saylor stop ducking me, I know you’re out there.”