Fidelity Expects More Countries to Acquire Bitcoin Citing ‘Very High Stakes Game Theory’

Fidelity Expects More Countries to Acquire Bitcoin Citing ‘Very High Stakes Game Theory’

Fidelity Expects Sovereign States and Central Banks to Acquire Bitcoin Citing ‘Very High Stakes Game Theory’

Fidelity expects extra sovereign nation states, or perhaps a central financial institution, to amass bitcoin this yr. “There could be very excessive stakes sport principle at play right here, whereby if bitcoin adoption will increase, the international locations that safe some bitcoin as we speak shall be higher off competitively than their friends,” the agency defined.

Fidelity’s Crypto Predictions

Fidelity Digital Assets, a subsidiary of Fidelity Investments, revealed a report on crypto developments and their potential future affect earlier this month. Among the developments mentioned within the report is the adoption of cryptocurrency by sovereign nations.

“This previous yr noticed some main strikes by world governments close to digital property,” Fidelity described. The report discusses international locations like China which have banned cryptocurrency and international locations like El Salvador that took the other method and made BTC authorized tender.

“We suppose the 2 developments noticed this yr couldn’t be extra opposed. Time will definitely inform which path is extra profitable,” the report authors opined. However, they famous:

An outright ban shall be troublesome to attain at finest, and if profitable, will result in a big lack of wealth and alternative.

The authors continued, “We additionally suppose there’s very excessive stakes sport principle at play right here, whereby if bitcoin adoption will increase, the international locations that safe some bitcoin as we speak shall be higher off competitively than their friends,” elaborating:

Therefore, even when different international locations don’t imagine within the funding thesis or adoption of bitcoin, they are going to be compelled to amass some as a type of insurance coverage.

Fidelity clarified, “In different phrases, a small price could be paid as we speak as a hedge in comparison with a doubtlessly a lot bigger price years sooner or later.” The funding agency concluded:

We due to this fact wouldn’t be stunned to see different sovereign nation states purchase bitcoin in 2022 and even perhaps see a central financial institution make an acquisition.

El Salvador’s president, Nayib Bukele, additionally predicted final week that two extra sovereign nations will undertake bitcoin as authorized tender this yr. The CEO of Devere Group, Nigel Green, nonetheless, is extra optimistic. He expects three extra international locations to undertake BTC as authorized tender this yr.

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