Despite the importance that Bitcoin has been gaining in recent years, it has been difficult for major financial firms to give their approval to the cryptocurrency. Analysis such as that of Goldman Sachs, considering BTC a purely speculative product, can be heard. Hence the importance of the firm Fidelity qualifying Bitcoin as a unique asset, in its latest report on digital assets.
Bitcoin’s relationship with traditional banking
For traditional financial institutions, accepting Bitcoin has been a complicated process. Well, despite the innumerable advantages that cryptocurrencies provide to the financial sector. Facilitating the execution of international transactions through Blockchain technology. Banks have typically been reluctant to give virtual currency their thumbs up.
At the end of the day, this attitude is strongly related to that maintained by the main governments of the world. Since, the same risk perceived by governments to their privileged position in the current financial system based on fiat money. It is also understood by traditional banks, the main beneficiary of the current monetary organization.
Therefore, it was not surprising that a few months ago the position of the US investment bank Goldman Sachs was filtered. Which, in a presentation addressed to its investors, advised against the acquisition of Bitcoin, considering it a purely speculative financial product. A position that, however, the company dedicated to the management of financial assets, Fidelity, would not share.
The Fidelity Report
Thus, the unit of the company dedicated to the analysis of digital assets, Fidelity Digital Assets, has mentioned in a recent report that Bitcoin has behaved exceptionally in recent years. Generating unprecedented benefits to its investors, and behaving practically independently of the rest of the market assets.
In this way, Fidelity recommends the acquisition of Bitcoin as an alternative asset. That is, those financial products that other than stocks and bonds, provide higher returns, but also higher risks in investment.
For this reason, for Fidelity, the ideal percentage of value that Bitcoin should represent in an investment portfolio is 5% of its total. If the price of Bitcoin increases significantly, Fidelity recommends selling the cryptocurrency to rebalance its weight in the portfolio by 5%. Also if the price falls, it recommends buying BTC.
With this report, Fidelity would become one of the financial firms that has shown the greatest acceptance towards Bitcoin and cryptocurrencies. Well, although for some crypto users 5% seems a very low proportion. The truth is that it is an important accolade to the crypto world, coming from one of the most important investment firms in the world.