What will happen to Bitcoin in the future

In a research publication, Fidelity experts described Bitcoin as a superior form of money, not just a technology. It is the most “secure, decentralised form of asset” and any “improvement” to it is bound to face compromises. Here’s a quote from analysts published by news outlet Cointelegraph.

Bitcoin clearly has many of the good qualities of money, combining the rarity and durability of gold with the ease of use, storage and transportation of notes.


In other words, experts recognise the huge potential of the major cryptocurrency because it combines the advantages of recognised gold-type assets, but is much more in line with the current state of the world. Still, it will take a network user anywhere in the world a few minutes to transfer BTC, while it is easier not to even think about transporting precious metals to other countries.


Bitcoin versus the dollar

Fidelity believes that BTC has all the qualities of a reliable form of money, as there is no centralized organization that the financial flows in the cryptocurrency network depend on. Bitcoin’s deficit and decentralised nature only strengthens its properties as an ideal monetary instrument. Analysts continue.

We won’t make such bold predictions about one form of money in the future, but we do believe that one digital asset will dominate its ecosystem because of the very powerful network effect.

Accordingly, the company's analysts suggest that Bitcoin will continue to maintain its influence on the cryptocurrency niche. That means other coins will continue to be dependent on its price movements.

Bitcoin’s exchange rate has only been falling over the past few months

That’s why Fidelity experts advise crypto investors to split their investment strategy into two parts. First, they should consider investing in Bitcoin as the industry’s main asset and then look for other profitable opportunities among other coins.


While such a strategy is noteworthy, it could prove far less lucrative when linked to altcoins. As a reminder, at the end of 2021, some cryptocurrencies delivered more than 10 thousand percent growth, while Bitcoin saw a more modest performance. Consequently, leaving promising blockchain projects behind and focusing only on BTC is clearly not a good idea.


Cryptocurrency exchange rate chart by month and for 2021 as a whole

Unfortunately, Bitcoin, even as an investment, is still finding “enemies” among government organizations around the world. Russia is no exception. As a reminder, just recently representatives of the Central Bank of Russia said that the likelihood of a complete ban on cryptocurrency circulation in the country is still very high. However, Russian citizens have already invested at least 16.5 trillion rubles or $214 billion in crypto as of December 2021.

The data was shared by Bloomberg representatives. According to their information, Russians own about 12 percent of all cryptocurrencies. Experts arrived at this figure after analyzing the IP addresses of some cryptocurrency exchange clients in the country. In addition, the data was shared by insiders familiar with Kremlin officials.

It is worth noting that the aforementioned data for Russia may be the minimum, as so many investors in the country prefer to hide their activity due to the authorities’ ambiguous stance on Bitcoin. As we can see, even on this issue, an overly negative attitude towards crypto is detrimental to government monitoring of the situation.

That said, trying to count the amount of coins in one country's possession seems odd to us. After all, exchanges usually do not disclose information about trading volumes by country, and with full-fledged cryptocurrency wallets and VPNs, the data would not be accurate at all. Therefore, we assume that this information could be erroneous, and the actual situation could easily be significantly different from the one presented.

Bitcoin in Russia

Be that as it may, Russian President Vladimir Putin has asked the Central Bank and the Ministry of Finance to come to a common agreement on the regulation of cryptocurrencies. So far, this offers some hope that officials will not completely restrict both the mining and circulation of Bitcoin.


We believe that Bitcoin and other modern cryptocurrencies are indeed superior to other forms of money in their key attributes. In some cases, cryptocurrencies are limited in their maximum supply, which is especially true in the current environment of rising inflation. In addition, sometimes coins are deflationary, meaning that they become scarcer over time.

And while a mandatory BTC link strategy may not be particularly lucrative, the viewpoint of Fidelity's experts does seem cutting edge and relevant. It remains to be hoped that other companies will soon share it.