Tom Jessop, the President of Fidelity Digital Assets, has said that bitcoin is “aspirationally” a store of value, but that the firm refers to it as a “potential store of value” as it is still extremely volatile.
Speaking at the Reuters Global Investment Outlook Summit 2020, Jessop revealed that BTC is still too volatile to act as a true store of value, although investors hope t will assume that role in the future. According to Reuters, he said:
We use the word ‘potential store of value’ as bitcoin is still extremely volatile, and by any standard perhaps would not achieve the mantle of a true store of value
A lot of investors are now “thinking about this space constructively,” he said, because “aspirationally” bitcoin is a store of value. The flagship cryptocurrency’s price, it’s worth noting, hit a new all-time high this year on several crypto trading platforms, even though it failed to breach through the $20,000 mark.
Currently, CryptoCompare data shows BTC is trading at $18,220 as it appears to be recovering from a dip from the $19,00 mark, to which it fell after briefly hitting a new all-time high on several exchanges.
Reuters adds that in a world where governments and central banks are “in full stimulus mode” and keep on using quantitative easing (QE), bitcoins limited supply is seen as a hedge against inflation. The cryptocurrency’s volatility, which is often conflated with risk, may put off investors.
Notably, Bitcoin’s Volatility Index (BVIX) appears to have a positive correlation with the price of the cryptocurrency, at least in the last few months. To some investors, the cryptocurrency is a risk-on asset that’s worth having as part of a broader portfolio.
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