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Some cryptos enjoyed a small bounce this week, but the \u201cwinter\u201d is far from over with prices well below last year\u2019s highs. <\/p>\n
The price of bitcoin is down 44% from its highs. Ethereum\u2019s price hovers 43%, BNB 45%, cardano 65%, XRP 70%, and solana 58% lower from their last year highs.<\/p>\n
Meanwhile, the world’s largest asset manager Fidelity released a paper<\/a> that calls bitcoin a \u201csuperior form of money.\u201d It argues that bitcoin is lightyears ahead of competition and no crypto is likely to catch up to it \u201cas a monetary good.\u201d<\/p>\n \u201cBitcoin is fundamentally different from any other digital asset. No other digital asset is likely to improve upon bitcoin as a monetary good because bitcoin is the most (relative to other digital assets) secure, decentralized, sound digital money and any \u201cimprovement\u201d will necessarily face tradeoffs,\u201d the paper wrote.<\/p>\n [Ed note: Investing in crypto is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]<\/em><\/p>\n Bitcoin <\/p>\n NurPhoto via Getty Images<\/small> Zooming out<\/strong><\/p>\n Fidelity\u2019s bullish case for bitcoin rests on a few key reasons:<\/p>\n New investors should consider bitcoin first<\/strong><\/p>\n Fidelity\u2019s analysts suggest other digital assets can fulfil different needs, and they will continue to exist. But bitcoin will likely emerge as the ultimate digital store of value. And investors who want to dip their toes in crypto should consider bitcoin first.<\/p>\n \u201cBitcoin\u2019s 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,\u201d the paper wrote.<\/p>\n That said, tread lightly. <\/p>\n Bitcoin may well come out as a long-term winner in the crypto universe. But with central banks slamming on stimulus breaks and raising rates to rein in inflation, risk assets, including crypto could face strong headwinds this year. <\/p>\n Stay ahead of crypto trends with\u00a0Meanwhile in Markets\u2026<\/strong><\/p>\n Every day, I put out a story that explains what\u2019s driving the crypto markets.\u00a0Subscribe here<\/a>\u00a0to get my analysis and crypto picks in your inbox.<\/p>\n<\/div>\n
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