Research Study
Bitcoin as an Aspirational Store of Value Revisited
An updated look at Bitcoin as a store of value
by Fidelity Digital Assets
February 28, 2024 • 24 min read
Executive Summary
In 2020, we assessed bitcoin’s properties and evaluated the case for the first and largest digital asset to be considered a store of value. More than three years later, Bitcoin’s resilience and growth has continued to demonstrate bitcoin’s value as a unique asset class and potential fit in an investor’s portfolio.
Investors who are new to digital assets may be wondering, “What role does bitcoin serve in a portfolio?” The truth is, as the ecosystem matures, Bitcoin may simultaneously serve many functions—either foundationally or through incremental layers. One interesting feature of Bitcoin is that its utility is not predicated on serving a single purpose. We encourage those seeking a contextual understanding of bitcoin’s unique properties and historical use cases to read our earlier overview.
In this updated piece, we revisit the view that bitcoin is an aspirational store of value. We reiterate bitcoin’s competitive advantages while outlining Bitcoin’s progress and potential catalysts that could help to shift investors’ perception of digital assets’ role in a portfolio.
The information herein was prepared by Fidelity Digital Asset Services, LLC (“FDAS LLC”) and Fidelity Digital Assets, Ltd (“FDA LTD”). It is for informational purposes only and is not intended to constitute a recommendation, investment advice of any kind, or an offer to buy or sell any asset. Perform your own research and consult a qualified advisor to see if digital assets are an appropriate investment option.
Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high-risk tolerance. Investors in digital assets could lose the entire value of their investment.
Custody and trading of digital assets are provided by Fidelity Digital Asset Services, LLC, which is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business (NMLS ID 1773897). FDA LTD relies on FDAS LLC for these services. FDA LTD is registered with the Financial Conduct Authority under the U.K.’s Money Laundering Regulations. The Financial Ombudsman Service and the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by FDA LTD.
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FDAS LLC and FDA LTD do not provide tax, legal, investment, or accounting advice. This material is not intended to provide, and should not be relied on, for tax, legal, or accounting advice. Tax laws and regulations are complex and subject to change. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
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