Tom Jessop, President of Fidelity Investments digital assets arm, told Reuters on Thursday that his firm still uses the word “potential” when describing volatile Bitcoin’s ability to act as a store of value, although many investors appear sold on the BTC as a safe haven narrative.

Fidelity Digital Assets Head says Bitcoin Still Too Volatile To Be Store of Wealth

The Bitcoin price has been flirting with $20,000 over the past few days, BTC’s macro bull-run appears largely driven by growing consensus in the market and amongst institutional investors of the crypto’s utility as a store of value against a weakening dollar.

However, Fidelity Digital Assets President Tom Jessop explained to Reuters Global Investment Outlook Summit that Bitcoin’s volatility makes it difficult to classify as a true store of value. Jessop said:

“We use the word ‘potential store of value’ as bitcoin is still extremely volatile, and by any standard perhaps would not achieve the mantle of a true store of value.” 

Bitcoin has been on a dizzying bull run over the last month climbing more than 40% and increasing its yearly gains to 170% percent.

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The BTC price rally has been mostly fuelled by recognition of Bitcoin among bigger US investors of the cryptocurrency’s inflation-resistant qualities. Famously Microstrategy began the institutional drive in August and September when it made Bitcoin it’s primary reserve asset. The gains the market intelligence firm has made in the short space of time has only increase greed and FOMO of other institutions.

Billionaire investor Paul Tudor Jones has advocated and invested in Bitcoin, announced earlier this year he aims to use BTC to hedge against inflation as central banks across the world are printing money to relieve economies affected by the coronavirus pandemic. Jones is one of Wall Street’s most seasoned and successful hedge fund managers, CEO and founder of Tudor Investment Corp.

Many investors are also buying Bitcoin because they see it as a “risk-on” asset and a payment method that is gaining mainstream acceptance. Jones acknowledged this in a recent interview with Yahoo Finance, Jones said everyone would be using some type of digital currency in the next 20 years, and it would be a lot similar to the “metals complex” of today.

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Nevertheless, Fidelity Digital Assets head Jessop argues that Bitcoin has been plagued by volatility its entire life and many are fearful of a repeat of the 2017 bubble where the BTC price soared nearly four-fold in a month before losing more than half its value in the following month.

Jessop sees the potential of Bitcoin and cryptocurrency but for now, Fidelity Digital Assets, which offers cryptocurrency trading and custody services for financial firms and corporations—is still unwilling to upgrade Bitcoin’s status to a fully-fledged safe have asset. He said:

“Aspirationally it is, and that’s one of the reasons why so many investors are now thinking about this space constructively.”

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