The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Asset Giant Fidelity Tackles Six Criticisms and Misconceptions Facing Bitcoin

by Daily Hodl Staff
November 15, 2020
in Bitcoin

Fidelity Digital Asset research director Ria Bhutoria is issuing rebuttals against six common criticisms and misconceptions directed toward Bitcoin.

In a new report, Bhutoria says that while the arguments against the largest cryptocurrency have been addressed many times in the past, it’s time to provide an updated response that reflects the rapidly growing interest in Bitcoin by mainstream and retail investors.

First, Bhutoria tackles the claim that Bitcoin is too volatile to be a store of value.

According to the Fidelity executive, Bitcoin’s volatility is the result of the cryptocurrency’s supply inelasticity and intervention-resistant property. Bhutoria explains that a rise in demand cannot force the network to produce more BTC due to the cryptocurrency’s fixed supply. The network also cannot generate BTC at a higher rate as the difficulty adjustment guarantees that blocks are produced every 10 minutes on average.

In addition, Bitcoin is an intervention-free market, says Bhutoria, as no central bank or government can artificially prop up or restrain the market to control volatility.

Another criticism thrown at Bitcoin is its failure as a means of payment. Bhutoria points out that BTC wasn’t designed to facilitate point-of-sale payments in the first place. What it lacks in capacity for daily transactions, says Bhutoria, Bitcoin makes up for with immutability, transparency, and decentralization, unique properties best used for international payments such as remittances and global settlements between businesses.

As for claims that Bitcoin mining is a waste of limited resources, Bhutoria says that a “significant number of operations are powered by renewables” such as hydroelectric power, wind, and solar energy, as well as surplus energy that would be wasted otherwise.

Despite fears that Bitcoin has made it easier for criminals to launder money and fund illicit activities, Bhutoria highlights that less than 1% of all Bitcoin transactions are connected to illegal activities. On the contrary, Bitcoin’s transparency feature allows law enforcement agencies to track BTC transactions.

“Bitcoin is pseudonymous, not anonymous, and blockchain analytics firms have developed sophisticated techniques to trace criminal activity via Bitcoin to real-world identities.”

In addition, Bhutoria addresses the issue that Bitcoin isn’t backed by anything. Fidelity’s head of research emphasizes that BTC is actually backed by code and by a consensus among its users who understand and have faith in its unique attributes.

Lastly, Bhutoria disputes the argument that BTC will be replaced by a competitor.

“While competitors have attempted to improve upon Bitcoin’s limitations (e.g., its limited transaction throughput or its volatility), it has been at the cost of the core properties that make Bitcoin valuable (e.g., perfect scarcity, decentralization, immutability). This explains why Bitcoin continues to dominate in terms of market cap, investors and users, miners and validators, as well as retail and institutional infrastructure and products.”

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/kkssr

Submit a Press Release

Industry Announcements

  • Narwhal Finance Secures $1 Million in Seed Funding Led by Animoca Ventures
    March 24, 2023
  • Sports Prediction App Pooky Launches Full Version of Its Play-and-Earn Game
    March 23, 2023
  • StormGain Launches StormGain DEX for User-Friendly Decentralized Crypto Trading
    March 23, 2023
  • KyberSwap Announces First-Ever ARB Token Liquidity Pools, Liquidity Mining and Trading Campaigns on Arbitrum
    March 22, 2023
  • Metacade Presale Hits Final Stage Before Listings, Raising Over $500,000 in Under 24 Hours
    March 22, 2023
  • Yesports Launches the Largest Esports Marketplace for Gaming Expansion Into Web3 Alongside 40+ Partners
    March 21, 2023
  • Metatime Raises $11M in Private Funding To Enhance Web 3.0 Ecosystem
    March 21, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$27,568.39
$27,568.39
2.71%
Ethereum
$1,748.37
$1,748.37
3.91%
Cardano
$0.361811
$0.361811
2.6%
XRP
$0.422751
$0.422751
4.84%
Dogecoin
$0.07497
$0.07497
3.04%

Spotlight

  • Coinbase Says US Banking Crisis Reinforcing Crypto Assets to the Upside, Catching Attention of Institutions
    March 22, 2023
  • Bitcoin Flashing Remarkable Strength As Adoption Accelerates, Says Analytics Firm Glassnode
    March 22, 2023
  • Polygon Teams Up With Ethereum-Based Crypto Project To Create Blockchain Dedicated to Gaming
    March 22, 2023
  • Arthur Hayes Says Bitcoin Can Shatter $1,000,000 on Vicious Cycle of Fed Money Printing
    March 22, 2023
NBX Warsaw Summit Banner
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl