Fidelity Digital Asset research director Ria Bhutoria is issuing rebuttals against six common criticisms and misconceptions directed toward Bitcoin.
In a new report, Bhutoria says that while the arguments against the largest cryptocurrency have been addressed many times in the past, it’s time to provide an updated response that reflects the rapidly growing interest in Bitcoin by mainstream and retail investors.
First, Bhutoria tackles the claim that Bitcoin is too volatile to be a store of value.
According to the Fidelity executive, Bitcoin’s volatility is the result of the cryptocurrency’s supply inelasticity and intervention-resistant property. Bhutoria explains that a rise in demand cannot force the network to produce more BTC due to the cryptocurrency’s fixed supply. The network also cannot generate BTC at a higher rate as the difficulty adjustment guarantees that blocks are produced every 10 minutes on average.
In addition, Bitcoin is an intervention-free market, says Bhutoria, as no central bank