Countries and Central Banks Will Buy BTC

To the world’s surprise, Fidelity predicted what Bitcoin’s game theory would mean. As Satoshi Nakamoto said, “It might make sense to buy some just in case it catches on.” This is in line with Fidelity’s “Research roundup: 2021 trends and their potential future implications“Report. Considering Fidelity is a multinational financial services company, it doesn’t get much more mainstream.

What does Fidelity think about Bitcoin adoption at the national and central bank level?

They make it clear:

“We also believe that there is very high stakes game theory here, that if bitcoin adoption increases, countries that get some bitcoin today will be competitively better off than their peers. So even if other countries don’t believe in investment theory or adoption Bitcoin, they will also be forced to buy some as a form of insurance. In other words, a small cost can be paid today as a hedge against potentially larger costs in the future.”

In other words, it might make sense to buy some in case it catches on. And, as Stacy Herbert puts it, “the first-mover advantage belongs to El Salvador.” At least if we talk about it openly, as other countries may accumulate Bitcoin at low levels. Venezuela, for example, has confiscated a lot of ASICs from private miners. Most likely those are those that are active in some repository. And, of course, there is rRumors that the U.S. is already mining.

In any case, what is Fidelity’s conclusion?

“So we wouldn’t be surprised to see other sovereigns acquire bitcoin in 2022, and possibly even central banks.”

If these players do so in public, it could spark a game like no other. It’s too risky not to play.

Speaking of Bitcoin mining…

Fidelity’s report wraps up 2021, and it covers most of the sickening major stories that NewsBTC reports.Companies don’t try to figure it out Why China Banned Bitcoin Mining, but it highlights How fast does computing power recover?.

“The recovery in hash rate this year has been truly astounding, and we think it shows several important issues to keep in mind in 2022 and beyond.”

The Fidelity report also highlighted the network’s responsiveness. “This has now been tested and Bitcoin’s network is performing flawlessly.”

BTC price chart for 01/17/2022 on Eightcap | Source: BTC/USD on

What is Fidelity’s overall assessment of the ecosystem?

The report is not just about Bitcoin, they also identify the biggest trends in the broad crypto space.

“The biggest non-Bitcoin themes on display last year included the mass issuance of stablecoins, the maturation of decentralized finance, and the early development of non-fungible tokens.”

Regarding these trends, Fidelity predicts:

  • “The growth of interconnectivity between siloed blockchains”

  • “Traditional fintech companies partner or build the ability to interact with DeFi protocols”

  • “The Dawn of Decentralized Algorithmic Stablecoins Has Officially Begun.” Addressing “Growing Demand for More Regulated, Centralized Stablecoins.”

  • “While the long-term value of these NFTs is unclear, the impact of increasing digital property rights on art, music and content may make sense in some form.”

Overall, Fidelity believes that investment in digital assets will continue to grow:

“Over the past two years, the allocation of digital assets to all investors has become more standardized. Fidelity Digital Assets 2021 Institutional Investor Survey It was found that 71% of US and European institutional investors surveyed intend to allocate digital assets in the future. Over the past three years, this number has grown in each individual region surveyed, and we expect 2022 to show a year of higher current and future asset allocation to digital assets among institutions. ”

However, something must happen to facilitate widespread institutional adoption. “The key to allowing traditional distributors to continue injecting funds into the digital asset ecosystem is regulatory clarity and accessibility.”

Is 2022 the year of regulatory clarity? What happens first, institutional adoption of cryptocurrencies or nation-state adoption of Bitcoin? Which central bank will gain the first-mover advantage? Hot topics for the year ahead.

Featured Image by Damir Spanic on Unsplash  | Charts by TradingView

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