The investment company “Fidelity” is one of the leading companies in exposing its customers to the category of cryptocurrencies, especially Bitcoin.

But Tom Jessup, head of multi-trillion dollar digital asset management, believes that bitcoin has failed to carve out a niche for itself as a store of value due to its many fluctuations.

Bitcoin is a “potential store of value” and not an actual store:

Speaking to the summit Reuters Global Investment Outlook for 2020, Tom Jessup told that Bitcoin has not yet reached store-of-value status.

But bitcoin investors are optimistic that it will happen one day.

He added, meaning:

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We use the word potential store of value because Bitcoin is still very volatile.

Perhaps he will not achieve any standard and wear the mantle of a true store of value…

But on the ambitious side, this is one of the reasons why so many investors are considering the possibility that Bitcoin will prove itself as a true store of value.

The argument made by “Tom Jessup” makes sense because the Bitcoin price movement is very volatile especially in the recent period.

In the past 8 months (since the March crash), Bitcoin has recorded nearly 400% gains.

Bitcoin also lost more than 90% of its value after the 2017 boom.

However, Bitcoin has seen an increase in demand, due to its inflation-resistant nature.

With governments and central banks taking action on full stimulus mechanisms, many observers believe that Bitcoin is useful and a hedge against inflation.

Since the limited supply of the coin is set at 21 million, it is believed that its rarity gives it an innate value.

Fidelity delves into cryptocurrencies, especially bitcoin:

Jessup may have reservations about the value in bitcoin, but his company is promoting the asset in every major way possible.

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Fidelity released its bitcoin investment thesis in October. The document made convincing arguments about the necessity of allocating a portion of the investment portfolio to Bitcoin.

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The Boston-based company noted that the strength of Bitcoin lies in its low correlation with any other asset within an investment portfolio.

According to Fidelity, a suitable scenario for investors is to invest in Bitcoin as an alternative asset.

It is a technique that allows wealthy people to protect their wealth by exposing themselves to a commodity in which the risk does not depend on what happens to other markets.

Fidelity’s subsidiary earlier partnered with “Stack Funds” in Singapore to enable wealthy Asian investors to buy bitcoins freely and securely.

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