Fidelity Digital Head Thinks BTC Is Too Volatile To Be Store Of Value

The Fidelity Digital head Tom Jessop believes that Bitcoin is still too volatile to become a store of value but it has the potential to do so in the near future. Jessop says that Fidelity was a frontrunner in providing crypto services to its users but thinks that BTC is “not quite there” as we are reading more in today’s BTC news.

Speaking to Reuters Global Investment Outlook Summit 2020, the Fidelity Digital Head Tom Jessop, says that Bitcoin still hasn’t attained all of the stores of value elements but BTC investors are still optimistic that one day the benchmark cryptocurrency will attain them. Bitcoin is truly still volatile and by any other standard it would likely not achieve the title as a store of value but it has the potential to become one which is one of the main reasons why so many investors are thinking to invest in it.

This argument makes much sense as the primary crypto’s price action was a roller coaster ride recently. In a time span of 8 months, BTC made 400% gains but it also had lost a lot of value by 90% after the 2017 boom. Still, the asset experienced a strong surge in demand because of its inflation-resistant nature. With the governments and central banks enter full stimulus mode, some observers consider BTC as a useful safeguard against inflation. Its supply is capped at 21 million and these people believe its scarcity will give it innate value.
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Tom Jessop has many reservations against Bitcoin’s store of value narrative but Fidelity Investments touted the asset in many ways than one. Fidelity released the BTC investment Thesis back in October and the document presented many arguments why the trillion-dollar BTC market is not out of the question. The Boston-based company observed that BTC’s strength lies in the low correlation with any other asset in the investment portfolio.

This according to the company, presents a favorable scenario for the investors since BTC becomes an alternative asset for them. This asset allows holders to protect their wealth by exposing themselves to a commodity where the risk doesn’t depend on what will happen to other markets. Also, the fund management company partnered with Singapore’s Stack Funds in order to enable wealthy Asian investors to securely and freely buy Bitcoin. According to the recent reports, Stack Funds will make Fidelity’s secure custody services available to the clients based in Asia, and all assets under management will be audited.