In a document titled “The Rising Dollar and Bitcoin,” the digital asset division of Fidelity Investments takes a bullish stance toward Bitcoin in growing currency economies.
The research study analyzed Bitcoin’s potential in the future in respect to its interaction with fiat money. Interestingly, the top cryptocurrency by capitalization is listed in the report as one of the assets exempt from financial derivatives.
Fidelity stressed the significance of Bitcoin as investment insurance in light of the dollar index’s approximately 17% annual rise.
The investment business voiced trust in the prospects of Bitcoin despite the ongoing recession. Because of its constant issuance and supply, as the research emphasizes, Bitcoin has proven crucial in the current high-inflation economy.
In the meantime, the study also examined the condition in the United Kingdom. It gave thought to the several initiatives taken by the government to revitalize its struggling economy. The central bank continues to experience market tension that necessitates more liquidity to control financial volatility despite increased measures to tackle excessive inflation.
The study stated that while transaction volumes between the British pound and bitcoin achieved record highs, several UK investors and dealers had already recognized Bitcoin’s ability to evade the current scenario.
As it was indicated, the strengthening of the US dollar is having detrimental consequences in other nations, such as the UK, and may soon drive the Federal Reserve to undo its tightening policy.
To lessen the immense debt burden that is crippling many industrialized economies, Fidelity advised greater monetary debasement. Bitcoin is among the few assets that do not correlate to another person’s obligation, have no counterparty risk, and have a fixed supply schedule, according to the research.
Recently, Fidelity announced its move to allow Ethereum trading from October 28 onwards.
