The head of digital assets at Fidelity says bitcoin adoption will continue “at an accelerated pace,” noting that “we have reached a tipping point.” He explained that investors are increasingly attracted to Bitcoin, “especially in an environment where we are seeing unprecedented monetary and fiscal stimulus from central banks and governments in response to the pandemic.”
The Tipping Point for Bitcoin Acceptance
Tom Jessop, President of Fidelity Digital Assets at Fidelity Investments, spoke about bitcoin adoption on Wednesday during an interview at Marketwatch and Barron’s Investing in Crypto event. Jessop is also the head of corporate business development at Fidelity Investments.
The Fidelity chief says the maturation and adoption of bitcoin as an investment grade “will continue at a rapid pace in the coming years,” explained Marketwatch, adding that this suggests cryptocurrency may have turned a corner in traditional financial circles.
I think we are still seeing accelerated adoption for a number of reasons.
The head of digital assets at Fidelity previously talked about the bitcoin market becoming more mature. “There is more liquidity. Volatility has decreased by about 50% compared to the 2017 level. So… we believe that the composition of this investor base, which is driving the market up today, is fundamentally different from what we saw three years ago, ”he said in January.
Jessop further explained Wednesday why investors are increasingly attracted to Bitcoin, citing factors such as ultra-low interest rates and an easy money environment.
“I think you have approximately 12 years of experience with the bitcoin blockchain to date since the block was invented in early 2009. And the pandemic, frankly, has become a catalyst for institutional adoption, and in particular bitcoin and storytelling, or a precedent associated with digital gold, ”Jessop described.
Fidelity’s chief executive explained, “Particularly in an environment where we have seen unprecedented monetary and fiscal stimulus from central banks and governments in response to the pandemic,” adding:
I think we have reached a tipping point … We are not going to get out of this stimulated environment anytime soon.
Jessop isn’t the only CFO to believe that Bitcoin has reached a tipping point. Bitcoin bull Mike Novogratz, CEO of Galaxy Digital, said last month that “Bitcoin adoption has reached a tipping point and investors don’t want to be left out.” His comment followed the approval of some Bitcoin Exchange Traded Funds (ETFs) in Canada. Meanwhile, investment bank Goldman Sachs also believes the bitcoin market is becoming more mature.
Do you agree with Tom Jessop about the tipping point in Bitcoin adoption? Let us know in the comments below.
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