certify
Home arrow Article arrow Article Detail

Fidelity Advises Countries, Central Banks To Buy Bitcoin

Profile Image

Indrani bose Follow

INDIA

Jan, 17 2022

Jan, 17 2022

likes | comments 0

Article Image

Fidelity which is one of the largest financial services companies in the world, last week advised in a note that other countries including the central banks should take advantage of low cryptocurrency prices and buy Bitcoin like El Salvador and Tesla. As per Fidelity those who invested in digital coins when the price is low will have a competitive advantage in the future.

Due to Bitcoin's volatile nature investors are suggested by market experts to keep cryptocurrency investments under 5% of the portfolio at the beginning.  Wall Street giant Fidelity is now advising countries to invest in Bitcoin.

In November bitcoin, which is the number one cryptocurrency in terms of market capitalization, has shown a price of almost $70,000 per bitcoin. This price was an all-time high but then price crashed back, losing around 40% of its value from its mid-November high and wiping $1 trillion from the combined crypto market.

Fidelity director of research Chris Kuiper and research analyst Jack Neureuter explained "If bitcoin adoption increases, the countries that secure some bitcoin today will be better off competitively than their peers. Therefore, even if other countries do not believe in the investment thesis or adoption of bitcoin, they will be forced to acquire some as a form of insurance”. The financial analyst also added that they "wouldn't be surprised to see other sovereign nation-states acquire Bitcoin in 2022 and perhaps even see a central bank make an acquisition."

Countries and other big firms investing in bitcoin:

In September, El Salvador declared bitcoin as its official currency along with the U.S. dollar and purchased bitcoin. In 2022, the country is planning to purchase another $500 million worth of bitcoin which will be funded by the issuance of $1 billion worth of tokenized bonds, and plans to create an ultra-low tax "Bitcoin City."

As per the report, BlackRock has opened a couple of its funds to "the possibility of investing in Bitcoin futures. In multi-asset portfolios Ruffer Investment Management added Bitcoin although pulled out after five months, making a profit of around $1.1 billion.

Mayor of Rio de Janeiro, Eduardo Paes reportedly talked about his plan to allocate 1% of the city's treasury reserves to cryptocurrencies. Last year, U.S. mayor of Miami, Francis Suarez highlighted his plan to put some of the city's treasury into bitcoin.

 


likes | comments 0

Profile Image

Indrani bose

CBW - External Analyst

INDIA

Comments
Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
banner
Article
WMG team up with OpenSea to expand Web3 opportunities 

WMG?team up?with OpenSea?to expand?Web3 opportunities for artists. This platform will enable artists to?build and extend their fanbase in the Web3 community. The nonfungible token (NFT) marketplace..;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.