Fidelity on Bitcoin & Feb 1 Settles
We wanted to give a shout out to Fidelity’s Digital Asset piece for January 2022, if you haven’t read it we suggest you do. Bitcoinist.com touched upon their piece which can be found by clicking here, Bitcoinist.com
The Fidelity piece is entitled “BITCOIN FIRST: Why investors need to consider bitcoin separately from other digital assets”
Long time econemotion’s readers know how we have covered this topic virtually since inception and more so since 2017 on this blog. Fidelity does make a distinction in regards to looking at Bitcoin as a technology and bitcoin as an asset, but for us, we don’t view it that way, rather they are one and the same.
However we do understand that Fidelity is trying to cater to an audience that may be less well versed and we totally get it. Disclaimer here, we do not view Bitcoin as something that should be traded like a commodity as that defeats the decentralized decoupling from fiat, because when you trade it, you are not trading it for Bitcoin, but rather for fiat and that for us is not what this was intended for. Bitcoin for us is meant to destroy fiat’s inherent inflationary construct and well, its done a very good job of that.
Anyway the conclusion to the piece sums it up best,
Traditional investors typically apply a technology investing framework to bitcoin, leading to the conclusion bitcoin as a first-mover technology will easily be supplanted by a superior one or have lower returns. However, as we have argued here, bitcoin’s first technological breakthrough was not as a superior payment technology but as a superior form of money. As a monetary good, bitcoin is unique. Therefore, not only do we believe investors should consider bitcoin first in order to understand digital assets, but that bitcoin should be considered first and separate from all other digital assets that have come after it.
We agree with their premise and we believe Fidelity will continue to make the right moves to cater to an ever growing appetite and audience!
While on the topic let’s take a look at Bitcoin, as we noted $32k was backed up by the 0.786 Fib which has promptly led to a rally up to $38k. What a gift that was to all that were paying attention! Anyway here is the chart:
For those that want further proof as to why Bitcoin will continue to punish fiat, look no further than the latest dubious honor of the greatest debt pile of all time as the US govt pile of mud hits $30 Trillion:
Let us know again exactly how the FED can raise rates and not destroy the global economy??? Yea that’s what we thought…
Ok on to today’s settles for February 1st 2022:
Till next time…
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