Fidelityâ€™s head of digital assets says that bitcoin adoption will continue â€œat an accelerated pace,â€ noting that â€œweâ€™ve reached a tipping point.â€ He explained that investors are increasingly drawn to bitcoin â€œParticularly, in an environment where weâ€™ve seen unprecedented monetary and fiscal stimulus from central banks and governments in response to the pandemic.â€
The Tipping Point of Bitcoin Adoption
Tom Jessop, president of Fidelity Digital Assets at Fidelity Investments, talked about bitcoin adoption Wednesday during an interview at Marketwatch and Barronâ€™s â€œInvesting in Cryptoâ€ event. Jessop is also head of Corporate Business Development for Fidelity Investments.
The Fidelity executive says that the maturation and adoption of bitcoin as an investment class â€œwill continue at a rapid pace in the coming years,â€ Marketwatch detailed, adding that this suggests that cryptocurrency may have turned a corner in traditional finance circles.
He was quoted as saying:
The head of digital assets at Fidelity has previously talked about the bitcoin market becoming more mature. â€œThereâ€™s more liquidity. Volatility is down about 50% from where it was in 2017. So â€¦ we believe, that the composition of this investor base, whatâ€™s driving the market higher today, is fundamentally different than what we saw three years ago,â€ he said in January.
Jessop further explained Wednesday why investors are increasingly drawn to bitcoin, citing factors such as the ultralow interest rates and an environment stimulated by easy-money policies.
â€œI think youâ€™ve had the accumulated experience of now roughly 12 years of the bitcoin blockchain being operative since the genesis block in early 2009. And the pandemic, quite frankly, was a catalyst for institutional adoption, and specifically bitcoin and the narrative, or use-case, around digital gold,â€ Jessop described.
The Fidelity executive elaborated, â€œParticularly, in an environment where weâ€™ve seen unprecedented monetary and fiscal stimulus from central banks and governments in response to the pandemic,â€ adding:
Jessop is not the only finance executive who believes that bitcoin has reached a tipping point. Bitcoin bull Mike Novogratz, CEO of Galaxy Digital, said last month that â€œBitcoin adoption has hit a tipping point and investors donâ€™t want to sit on the sidelines.â€ His comment followed the approval of some bitcoin exchange-traded funds (ETFs) in Canada. Meanwhile, investment bank Goldman Sachs also sees the bitcoin market becoming more mature.
Do you agree with Tom Jessop about the tipping point of bitcoin adoption? Let us know in the comments section below.
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