Bitcoin ($BTC) Has Significant ‘Upside Potential’, Says Fidelity’s Head Of Research

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Bitcoin

Chris Kuiper, the head of research at Fidelity Digital Assets, recently suggested that Bitcoin ($BTC) still has tremendous “upside potential” while still being a less hazardous investment due to its 13-year track record.

In an interview with Cointelegraph conducted shortly after Fidelity released a report titled “Bitcoin First,” which addresses concerns Fidelity clients have about the cryptocurrency, including BTC being replaced by a more advanced crypto asset and having a potentially lower upside left compared to other coins.

Kuiper argued that Bitcoin’s value proposition as a censorship-resistant decentralized monetary network sets it apart, and even compared its innovation to inventing the wheel. He said:

You can’t reinvent something that’s already been invented in terms of the most secure, most decentralized and what we consider as the best monetary good in the digital asset space.

While some other cryptoassets may have a bigger upside potential, they are also riskier investments and should be considered venture capital bets because of these risks, according to the CEO.

Regardless of potential improvements in the cryptocurrency ecosystem, Kuiper believes bitcoin will remain a significant part of it in the future.

In a scenario where numerous blockchains coexist, he believes BTC will remain a primary “money anchor” for other crypto assets.

What “gives these other tokens or projects value is that they can somehow relate back to Bitcoin” or be converted back into the flagship cryptocurrency, according to the analysts.

According to Kuiper, BTC’s 13-year existence has significantly reduced its downside risks, while it still has significant upside potential as a store of value, as it replaces gold.

Conclusion

Fidelity Digital Assets released a paper earlier this year arguing that Bitcoin is a “superior form of money” that has the potential to become the “primary monetary good,” and that its technological triumph was based on that superiority rather than as a superior payment mechanism.

Over the last few weeks, sentiment toward BTC has been mixed. While some see Bitcoin’s price plummeting in the near future, the majority of JPMorgan’s clients believe it will surpass $60,000 by the end of the year, with 41% expecting it to trade at that level by the end of the year, 9% expecting it to trade above $80,000, and 5% expecting it to trade at $100,000.

Read More: Time To Shift Funds From Crypto To Mutual Funds Or Stocks Before March 31?

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