Fidelity a wall street titian has said other countries and central bank could follow El Salvador into Bitcoin (BTC) this year. Fidelity released a note last week titled "2021 Trends and Their Potential Future Impact
Fidelity believes early adopters of the cryptocurrency better off than their peers and the BTC network demonstrated its resiliency despite the second largest economy in the world effectively banning it.
The make the argument at these prices the adoption cycle is still very early and urge people to start looking at creating a position now.
"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 do highlight the risks and talk about El Salvador adoption of BTC. For those that don't know El Salvador became the first country in 2021 to adopt BTC, with the country giving free bitcoin to its citizens and making it mandatory that all businesses accept bitcoin as a form of payment, in addition to traditional fiat. BTS's price has fallen about 40% from its mid-November high and it looks like the country has lost about $10 million.
It further discuses how China is taking the opposite approach by implementing various bans on the mining and trading of BTC and they specifically call it mistake. I agree with this thought, but realize that China see crypto as an attack on their control which is why the implemented the bans. I think this power struggle and decision to ban will cripple their innovation and economy when the rest of the world adopts.
Fidelity made great points about how BTC has evolved and has been validated since recent regulations targeted the sector meaning the US government understands this is not a fad and will be the future. They are bullish on the space and so am I. I for one have been using this downward pressure to DCA on my favorite projects. I think 2022 will be good for the space so I hope you are prepared.
