Fidelity’s head of digital assets says that the adoption of bitcoin “will continue at an accelerated pace, pointing out that” we have reached a turning point. “He explained that investors are increasingly attracted to bitcoin. ‘Especially in an environment where we have seen unprecedented monetary and fiscal stimulus from central banks and governments in response to the pandemic.’
The tipping point of Bitcoin adoption
Tom Jessop, president of Fidelity Digital Assets at Fidelity Investments, spoke on Wednesday about bitcoin adoption during an interview at Marketwatch and Barron’s “Investing in Crypto” event. Jessop is also Head of Corporate Business Development for Fidelity Investments.
The Fidelity CEO says that the aging and acceptance of bitcoin as an investment class ‘will continue at a rapid pace’, Marketwatch explained, adding that it suggests that cryptocurrency may have made a turn in traditional financing circles .
He said:
I think we continue to see adoption at an accelerated pace for a number of reasons.
The head of digital assets at Fidelity has previously talked about the bitcoin market becoming more mature. “There is more liquidity. The volatility is about 50% lower than in 2017. So … we believe that the composition of this investor base, which is driving the market higher today, is fundamentally different from what we saw three years ago, ‘he said in January.
Jessop further explained on Wednesday why investors are increasingly attracted to bitcoin, citing factors such as ultra-low interest rates and an environment stimulated by easy-money policies.
‘I think you have had the accumulated experience of the fact that there has been about 12 years of the bitcoin blockchain in force since its inception in early 2009. And the pandemic was honestly a catalyst for institutional adoption, and specifically bitcoin and the story, or cash register, around digital gold, ”Jessop described.
The Fidelity executive worked out: “Particularly in an environment where we have seen unprecedented monetary and fiscal stimulus from central banks and governments in response to the pandemic,” he said:
I think we’ve reached a turning point … We’re not going to get out of this stimulated environment anytime soon.
Jessop is not the only chief financial officer who believes that bitcoin has reached a turning point. Bitcoin Bull Bitcoin CEO Mike Novogratz said last month that “the adoption of Bitcoin has a turning point and investors do not want to sit on the sidelines.” His remark follows the approval of some bitcoin exchange traded funds (ETFs) in Canada. Meanwhile, investment bank Goldman Sachs is also seeing the bitcoin market mature.
Do you agree with Tom Jessop on the tipping point of bitcoin adoption? Let us know in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for information only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or approval of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly responsible for any damage or loss caused or claimed to have been caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.