Fidelity responded to six criticisms about Bitcoin..

16.11.2020
The Research Director of Fidelity Digital Assets responded to the most frequent criticisms about bitcoin in order to bring clarity in the conditions of increased interest in cryptocurrencies;

in article
in her blog post, Fidelity Digital Assets Research Director Ria Bhutoria said she wanted to turn to constant «criticism and misconceptions» about cryptovalues. This includes questions about the instability of bitcoin to implement a savings tool function, its ability to act as a means of payment, and its eco-friendliness;

«Bitcoin volatility is a compromise that leads to a lack of supply flexibility and a market without intervention,» Butoria said;

According to her, the «main» option of using the largest crypt currency is not in the area of payments. However, Bitcoin’s capabilities are used to perform calculations on transactions that are not serviced by traditional mechanisms;

«Limited bandwidth is a compromise in Bitcoin for the sake of decentralization, which is a direct result of cheap and simple transaction checking,» she wrote;

The article also deals with the issue of energy costs of bitcoin mining. According to the research director of Fidelity Digital Assets, «a significant part» of the electricity for mining comes from renewable sources;

«The number of BTC transactions related to illegal activities is very small,» said Butoria, responding to widespread criticism of cryptology as a whole. Like cash, Bitcoin is «neutral and has properties that can be valuable to good and bad people,» she said;

Regarding the argument that Bitcoin is not backed up by anything, such as real assets, Buthoria wrote that it is in fact «backed up by the code and consensus that exists among key stakeholders in the network. The price of Bitcoin is rising because people recognize the benefits of «an ideal supply shortage … of irreversible transactions as well as resistance to confiscation and censorship,» she said;

Finally, she wrote that Bitcoin is unlikely to be displaced by another cryptographic currency. Although there were already alternatives that tried to exclude Bitcoin’s «limitations», such as limited bandwidth and volatility, «this was due to changes in the basic properties that make Bitcoin valuable»;

Recall that recently Fidelity Digital Assets (FDAS) attracted
more than 20 developers to expand cryptographic services because of the increased interest of institutional investors. Earlier Fidelity Digital Assets analysts claimed that bitcoin has the basic characteristics of a means of accumulation and can become an insurance against the problems of the existing financial system;