Financial services giant Fidelity says more nations will purchase Bitcoin (BTC) this year to stay competitive.
In another, strategists at the firm say that a high-stakes form of game theory is in play and countries who don’t adopt the top crypto asset by market cap early could fall behind their peers.
"If Bitcoin adoption goes up, the countries that secure some Bitcoin today will be better off from the competition than their peers.
Consequently, even if other countries do not believe in the investment thesis or the adoption of the BTC, they will have to acquire a form of insurance.
In other words, a small cost can be paid today as a hedge relative to years of potentially much larger costs in the future. We would not be surprised to see other sovereign states acquire Bitcoin in 2022 and perhaps even see a central bank acquire it."
Faithfully, the new regulations, such as the U.S. infrastructure bill passed in November, will help cryptocurrencies validate themselves as a legitimate asset class.
Fidelity says that even if the act is vague, there are legislators who are aware of it and who are scrambling to amend the bill in order to save it.
"The bill is not expected to come into force until 2024 and multiple amendments are already proposed. So time will tell us what will become of the law itself.
But what we think is most remarkable is that regulating digital assets becomes another important step as the asset class expands and becomes established."
Bitcoin is exchanging hands at $43,546 at time of writing, a 6.5% increase from its seven-day low of $40,897.