“Coming up to 34 million accounts”

After Monday‘s wipeout, the prices of cryptocurrencies turn mixed.

Over the past week, the price of bitcoin rose 4.9%, at one point hitting a high of just over $ 22,500. Most of the major altcoins are also recovering. The price of Ethereum jumped a few percentage points, Cardano

is up 0.8%, Solana

increased by 4.8%. XRP

and dogecoin increased by 2.5%, 0.1% while shiba inu and BNB
down by 1.5% and 1.4%.

Meanwhile, bitcoin is said to be taking another step towards mainstream adoption soon.

People familiar with the matter told the Wall Street Journal that Fidelitythe fourth largest wealth manager in the world with oversight of $ 4.3 trillion in assets, plans to allow individual investors to trade bitcoins.

On Monday, Mike Novogratz, CEO of Galaxy Holdings, one of Fidelity’s first crypto clients, told a lecture: “A little bird told me that Fidelity, a little bird in my ear, will turn its retail clients into crypto pretty soon. . “

If the gossip comes true, it will mark Fidelity’s latest step towards mainstreaming bitcoin as an asset class for its massive 84 million investor base.

During Covid’s cryptocurrency boom, Fidelity was one of the first wealth managers to launch a private crypto fund for accredited investors. Earlier this year, Fidelity was the first institution to add bitcoin to 401ks.

And now bitcoin is hitting its 34 million brokerage accounts.

Zoom out

What does the fidelity vote of confidence mean for bitcoin?

After more than a decade of bullying as a Ponzi scheme, or as Warren Buffet called it, “rat poison squared”, bitcoin is finally carving out a place in wallets as legitimate. alternative asset class.

The key here is alternative.

As I argued last year (and accurately predicted a rise in bitcoin near $ 70,000), bitcoin doesn’t compete with traditional assets. And contrary to its original promise, it has no option to substitute fiat currencies or CBDCs for that matter. Instead, it competes with traditional property insurance.

That is, gold.

Think about it. There are about $ 11 trillion worth of this yellow metal stuff in central bank reserves and investor wallets. Retail investors alone have parked around $ 2.5 trillion in this asset class. And over time, their holdings continue to grow.

This is because gold has only one job, and it does it very well. That is, sit in a vault and keep its value compared to traditional assets.

But gold is almost a relic at this point. It’s inconvenient to move, has a high transportation cost, and is otherwise impractical in the increasingly digitalized and automated financial world.

This is where bitcoin comes in.

Looking forward

Can Bitcoin Replace Gold?

Its obvious appeal is technological superiority – there is no question about it. You’re comparing an immutable store of value built on blockchain technology to a simple metal hollowed out of the ground here.

Bitcoin’s weakness is that it is still on a roller coaster. And for a store of value, 12 years and a recession are only small steps compared to gold’s 5,000 years of experience. That said, every institutional win, like adding it to 401k, brings it closer and closer to a tipping point.

What would happen if bitcoin replaced gold? According to JPMorgan estimates, the price of bitcoin could exceed $ 150,000 in the long run, only if it matched private gold investments (excluding central bank reserves and institutional investments).

But what happens if bitcoin becomes a reserve asset? These are the questions that will actually guide bitcoin in the long run.

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