In any case, the chief analyst at Fidelity Digital Assets sees Bitcoin as a big winner in the crypto industry, no matter which project ultimately prevails.
Chris Kuiper, the principal analyst at Fidelity Digital Assets, strongly believes that Bitcoin ( BTC ) needs to be viewed separately from other cryptocurrencies and accordingly should have a special place in investors' portfolios.
Fidelity Digital Assets' latest market research report, Bitcoin First, reveals that clients of the major crypto asset manager have two major concerns about BTC. Firstly, the question for investors is whether the market leader will be overtaken by another cryptocurrency in the future and secondly, whether Bitcoin only has less room for improvement compared to the other crypto projects.
Kuiper counters fears that BTC, as the most decentralized and resilient (to censorship) cryptocurrency ever, offers unique value whose “business model” cannot really be reinvented.
"You can't reinvent something that has already been invented and already offers the greatest resilience and decentralization and is sufficiently recognized as the best financial product in the field of digital assets," said the expert in this context.
Even if other cryptocurrencies potentially have more room for improvement than the market leader, this is accompanied by a significantly increased risk, which is why investments in the projects concerned should be understood more as a kind of venture capital investment.
For these reasons, Kuiper is certain that BTC will ultimately prevail, regardless of how the crypto market develops in the coming weeks and months. Even if, for example, there were a scenario in which several large blockchain networks coexisted in parallel as multi-chains, Bitcoin would probably be the overarching constant as a kind of “currency anchor”.
“What ultimately gives value to all these other cryptocurrencies and projects is that they can be tied to Bitcoin, whether directly or indirectly,” the lead analyst continued.
And if a blockchain project ultimately prevails as a "winner-takes-all", then BTC would nevertheless probably be the protocol to which the majority of blockchain apps are tailored.
Additionally, Kuiper cautions that BTC's thirteenth anniversary drastically reduces the risk of investing directly and indirectly in the market leader. The room for improvement would still be great, however, because the industry leader is in the best position to demolish gold's status as the leading store of value.
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