Fidelity Digital Assets, a subsidiary of Fidelity Investments, has responded to some of bitcoin’s most frequent criticisms, suggesting clarity is needed amid heightened interest in the cryptocurrency.
In a blog post on Thursday, Director of Research Ria Bhutoria said she was addressing persistent “criticisms and misconceptions” about the cryptocurrency. These include whether bitcoin is too volatile to be a store of value, has failed as a means of payment and is environmentally wasteful.
“Bitcoin’s volatility is a trade-off [that] makes for perfect supply inelasticity and an intervention-free market,” she said, but with greater adoption and introduction of derivatives and investment products, volatility may continue to drop.
According to the Bhutoria, the world’s first cryptocurrency’s “core” use case isn’t in payments. However, it uses its limited capacity for settling transactions that aren’t well-served by traditional rails, and offers “high settlement assurances.”
“Limited throughput is the trade-off bitcoin makes for decentralization, which is