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Fidelity Survey: 52 % Of institutional investors have Bitcoin as a form of investment
According to the study, the 2021 Institutional Investor Digital Assets Report, released by Fidelity Digital Assets, examined the behavior of investment firms in light of the precarious position that conventional markets have been in over the last year.
Similar to last year's poll, the findings of this year's research revealed that European investors had a more progressive attitude about bitcoin than American investors across all areas examined in the study.
As a result, Asian investors were most interested in bitcoin and cryptocurrencies, with 70 % of those who responded to the poll claiming to be current owners of these assets. The study included Asian investors for the first time this year, which marked a milestone for the industry.
As stated in the study, "we observed year-over-year increase across virtually every area, including perception and appeal, present exposure, and inclination for future investment" in both Europe and the United States.
Considering all investors questioned across the world, 52%t of respondents indicated they invest in bitcoin or cryptocurrency, and nine out of ten investors found such assets attractive. Notably, 84% of high-net-worth investors in Europe said that they had a position in the asset class in question.
According to institutions, the most attractive feature of bitcoin and other cryptocurrencies was its "great potential upside" regarding the future price increase.
Fidelity also researched to determine what institutional investors presently see as the most significant obstacles to adoption. As a result, 54 % of respondents cited price volatility as one of the most significant obstacles, with 44% citing a "lack of fundamentals to assess proper value" as the most pressing issue.
That is an intriguing issue brought up by the investors in the poll since, although the broader category of "cryptocurrencies" lacks fundamentals, Bitcoin is probably the most well-founded asset available at the moment. It is an immutable and incorruptible source of truth in a world where central bank monetary policy distorts prices.
The Bitcoin network, which is firm and incorruptible, serves as sound money that cannot be devalued or influenced, thereby protecting the purchasing power of ordinary people all over the world.
On the other hand, Volatility is genuine, but it is a consequence of the early adoption stage in which Bitcoin is presently operating. Both problems, Volatility and a lack of fundamentals, are more a result of the mainstream media's agenda and a lack of comprehension than flaws with Bitcoin itself - something Fidelity recognized in its study, as did other analysts.
In general, the main worries raised by investors in the poll "tend to correspond with the major storylines that are often observed in media coverage of digital assets in general and bitcoin particularly," according to the study.
It is critical for institutional investors and the financial services sector to maintain their education in this emerging field since they are still learning the full potential of the underlying technology.
Global market attitude toward Bitcoin and cryptocurrencies is "neutral to favorable," according to the study's findings. Seventy-five % of Investors polled had such an opinion of these assets, while 79% of family offices in the United States held the same idea. Digital assets were perceived positively or negatively by nearly all financial advisers in Asia, ranging from "neutral to favorable."
One thing to keep in mind about Bitcoin is that it has so far exceeded the previous halves, just lately seeing smaller gains than in the past, but is well-positioned for a good bull run. Of course, there is a lot more fear and uncertainty being disseminated this time around than in 2017. Although I am sure that bitcoin will break out, I think that this whole scenario will play out over the next six to eight months, rather than much sooner as many would expect.
As previously discussed, bitcoin enters a bull cycle after each halving, at which time it experiences significant growth over the next 18 months. Bitcoin has done much better than it did during the last bull cycle (except recent dips), and it seems like it will exceed the previous bull cycle by a wide margin.
Thus, despite the World Bank's opposition to El Salvador's adoption of bitcoin, they will be forced to accept bitcoin payments since the cryptocurrency is the country's legal money, opening the door to a whole new world of comedy.
Increasingly famous people in the financial world will become more interested in Bitcoin as it develops and withstand the test of time. It will lead to a more thorough examination of the complexities of the peer-to-peer monetary network.
Investors will be increasingly willing to make significant investments as they get a more excellent grasp of the possible asymmetric upside. Many people may recognize the world-changing qualities of Bitcoin and how beneficial it may be for both individuals and society as a whole.
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