Fidelity Expects More Countries to Acquire Bitcoin Citing ‘Very High Stakes Gaming Theory’ – Featured Bitcoin News

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Fidelity expects more sovereign nation states, or even a central bank, to acquire bitcoin this year. “There is a very high-stakes game theory here that if bitcoin adoption increases, countries securing bitcoin today will be better off than their peers,” the company explained.

Fidelity Crypto Predictions

Fidelity Digital Assets, a subsidiary of Fidelity Investments, released a report on crypto trends and their potential future impact earlier this month. Among the trends discussed in the report is the adoption of cryptocurrency by sovereign nations.

“Last year, governments around the world took major action when it comes to digital assets,” Fidelity described. The report discusses countries like China that have banned cryptocurrency and countries like El Salvador that have taken the opposite approach and made BTC legal tender.

“We believe that the two developments observed this year could not be more opposite. Time will certainly tell which route is more effective,” the report authors said. However, they noted:

An outright ban will be difficult to achieve at best and, if successful, will result in a significant loss of wealth and opportunity.

The authors continued, “We also believe there is a very high-stakes game theory here that if bitcoin adoption increases, countries securing bitcoin today will be better off than their peers.” , working out:

Therefore, even if other countries do not believe in the investment thesis or adoption of bitcoin, they will be forced to acquire it as a form of insurance.

Fidelity clarified: “In other words, a small cost can be paid today as a hedge against a potentially much higher cost in years to come.” The investment company concluded:

So we wouldn’t be surprised to see other sovereign nation-states acquire bitcoin in 2022 and maybe even see a central bank make an acquisition.

El Salvador President Nayib Bukele also predicted last week that two more sovereign nations will adopt bitcoin as legal tender this year. Devere Group CEO Nigel Green, however, is more optimistic. He expects three more countries to adopt BTC as legal tender this year.

Tags in this story Bitcoin adoption, central bank adopts bitcoin, countries buying bitcoin, cryptocurrency adoption, El Salvador, fidelity, Fidelity Digital Assets, Fidelity Investments, Fidelity predictions, sovereign nation states, treasury

Do you agree with Fidelity? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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