Nice work from Fidelity. Topic covered include: - Bitcoin is too volatile to be a store of value. - Bitcoin has failed as a means of payment - Bitcoin is wasteful and/or bad for the environment. - Bitcoin will be replaced by a competitor. - Bitcoin is not backed by anything. - A bug in Bitcoin’s code could render it worthless. - Regulations will slow Bitcoin adoption - People could lose interest. - There are “unknown unknowns.” https://www.fidelitydigitalassets.c...ing Persistent Bitcoin Criticisms (11.02).pdf A LOT of these criticisms I see repeated here everyday! Here are some good quotes... "As bitcoin ownership becomes more widespread, bitcoin’s price should stabilize in tandem with net new participants having less of an ability to move the market." "Many continue to believe that bitcoin’s core use case is as a means of payment for everyday low-valuebtransactions. Believing this, critics suggest bitcoin has failed because it (at least its base layer) does not (and cannot) currently offer the same transaction throughput as legacy payment rails, such as Visa, Mastercard, or PayPal. However, Bitcoin vs. Mastercard or Visa is not an apples-to-apples comparison because legacy transaction processors do not provide final settlement until days later, whereas Bitcoin’s low five to seven transactions per second (TPS) is slower, but it represents final settlement." "Most bitcoin mining is powered by renewable energy or energy that would otherwise be wasted" "Bitcoin makes trade-offs for core properties that the market deems valuable. While Bitcoin’s opensource software may be copied, its community and network effects cannot." "Bitcoin is not backed by cash flows, industrial utility, or decree. Bitcoin is backed by code brought to life by its stakeholders’ social contract."
Add this to the pile of "Bitcoin is dead" articles from knucklehead journalists and analysts that don't anything about anything for the past 12 years.
I am sure they have thought about this. Also they (fidelity) have been unabashedly pro bitcoin for like 7 years now.
I suspect that since all the ETF filings had to be redone after consultation with the Feds this is the template for a Risk Disclosure Document the Feds will require. It's really all about risks and nothing about opportunity. That has the Fed's prints all over it, but it's all conjecture until an approval.
to be clear, this report is pro bitcoin. It just tackles common criticisms such as it uses too much energy, there will be a bug, it’s not good for micro payments, etc.
I would genuinely love to hear what you disagree with. What refutation to these criticisms are you not buying?
I think Bitcoin is a high-tech pet rock, like every other cryptocurrency. To me this makes it wobbly: