Fidelity Predicts Nation States and Central Banks to Buy Bitcoin in 2022
A recently published report from Fidelity Digital Assets, the crypto branch of Fidelity Investments, with $4.2 trillion assets under management, expects nation states and central banks to buy Bitcoin (BTC) in 2022, incentivized by a high-stakes real life play of game theory.
In their 2021 annual report, Fidelity gives its “two sats” on the future of the digital assets and discussed Bitcoin mining and the network adoption.
By studying Bitcoin miners’ behavior, the firm concludes that the current cycle will continue. It says:
“As Bitcoin miners have the most financial incentive to make the best guess as to the adoption and value of BTC (…) the current bitcoin cycle is far from over and these miners are making investments for the long haul.”
Furthermore, the hash rate recovery in 2021 after China’s went all out in its crackdown on crypto “was truly astounding,” the report reads. The redistribution of mining activities around the world, such as Kazakhstan, Argentina and US state Texas, clearly show miners are in it for the long run.
A lot of speculation is happening, when it comes to predicting which nation-state will follow El Salvador’s example and accept BTC as legal tender; Fidelity had the following to say:
“There is very high-stakes game theory at play here, whereby if Bitcoin adoption increases, the countries that secure some Bitcoin today will be better off competitively than their peers. We, therefore, wouldn’t be surprised to see other sovereign nation-states acquire bitcoin in 2022 and perhaps even see a central bank make an acquisition.”
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Source: igaming
