Why Sovereign Nation States May Begin Acquiring Bitcoin in 2022

New Fidelity report on something we have tossed-around here before – how nations are going to either secure their future or their downfall by adopting and acquiring Bitcoin now

Why Sovereign Nation States May Begin Acquiring Bitcoin In 2022

“In a recent report published by Fidelity, it goes into depth about bitcoin and the role it may play in deciding which countries are the economic leaders of the world. This is because as the asset becomes more widely spread as a reserve currency, the countries who hold bitcoin may see their influence grow higher than those who do not, despite where they might stand today.

History has always shown that those who are quick to accept innovation and new technology have always ended up faring better compared to those who do not, and that may well be the case with bitcoin and other cryptocurrencies.

Fidelity also refers to it as a ‘very high stakes game theory.’ If bitcoin adoption continues to grow, then those who got in earlier will no doubt be better off than the rest. This will push other countries to also acquire the digital asset as ‘insurance’ so as to not be left behind even if they do not believe in the investment thesis or the adoption of the digital asset.

Basically, sovereign nation-states would purchase bitcoin sort of as a hedge, in case it does end up being important in the future. ‘In other words, a small cost can be paid today as a hedge compared to a potentially much larger cost years in the future.’”



Master Asked on January 14, 2022 in Bitcoin.
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