Fidenlity and Citi are positive about bitcoin

Two major institutional companies Fidenlity and Citi presented their views on the No. 1 cryptocurrency.

Jurrien Timmer, director of macro policy at Fidelity Investments, a 26-year veteran of the organization, said bitcoin can be a financial instrument that can provide protection against dollar inflation. Fidelity Investments presented its view of bitcoin in more detail in a 12-page report titled “Understanding Bitcoin: Should the asset be considered as part of an investment portfolio?”

The report’s author, Mr. Timmer, concludes that “Bitcoin is becoming part of the mainstream, and more and more investors are viewing it as an acceptable asset to invest in.” The top manager of an investment fund with a whopping $9.8 trillion in assets under management believes that:

“If you consider an investment portfolio that is 60% stocks and 40% bonds, then gold and bitcoin could be the assets that can largely take the place that bonds currently occupy in such a portfolio…. in a situation where bond rates are very low or positive at all, it makes sense for an investor to replace some of those financial products with gold or something similar to that precious metal… Bitcoin is similar to gold in that sense, given the certainty with the #1 cryptocurrency supply that we have.”

Almost simultaneously with the Fidelity Investments report, a Citi Financial Group study also appeared. It, in 106 pages, presents the organization’s vision for bitcoin. Citi concludes that bitcoin’s properties “could potentially lead to it being involved in international trade… Bitcoin is now at a turning point in its history, and we may be at the beginning of a major integration of cryptocurrencies into the classic market.” As a reminder, two other institutional companies have previously shown support for bitcoin.