Research Study
Revisiting Persistent Bitcoin Criticisms
An updated response to common Bitcoin criticisms
November 3, 2023 • 27 min read
Executive Summary
In November 2020, we highlighted some of the most common Bitcoin criticisms that were sourced from our regular conversations with institutional investors and observation of public commentary on Bitcoin. More than three years later, Bitcoin not only remains the largest digital asset by market capitalization, but continues to grow as a monetary network.
In this piece, we address common Bitcoin criticisms and misconceptions—some legitimate, some debunked. First, we revisit criticisms we’ve covered in 2020, which have been refuted many times over:
- Bitcoin is too volatile to be a store of value.
- Bitcoin has failed as a means of payment.
- Bitcoin is wasteful and/or bad for the environment.
- Bitcoin will be replaced by a competitor.
- Bitcoin is not backed by anything.
The original criticisms above are those we believe can be refuted or are unlikely to be a serious concern. However, we believe that there are a few legitimate concerns that have some, even if small, probability of occurring and, therefore, investors should be aware. These include:
- A bug in Bitcoin’s code could render it worthless.
- Regulations will slow Bitcoin adoption.
- People could lose interest.
- There are “unknown unknowns."
The information herein was prepared by Fidelity Digital Assets, National Association (“FDA, NA”) 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. Digital assets are not insured or guaranteed by the Federal Deposit Insurance Corporation, or any other government agency, and are not obligations of any bank.
Custody and trading of digital assets are provided by FDA, NA, which is a national trust bank. FDA, LTD relies on FDA, NA 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.
To the extent this communication constitutes a financial promotion in the U.K., it is issued only to, or directed only at, persons who are: (i) investment professionals within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO"); (ii) high net worth companies and certain other entities falling within Article 49 of the FPO; and (iii) any other persons to whom it may lawfully be communicated.
This information is not intended for distribution to, or use by, anyone in any jurisdiction where such distribution would be contrary to local law or regulation. Persons accessing this information are required to inform themselves about and observe such restrictions.
FDA, NA 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.
Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Digital Assets or its affiliates. Fidelity Digital Assets does not assume any duty to update any of the information.
Fidelity Digital Assets and the Fidelity Digital Assets logo are registered service marks of FMR LLC.
© 2025 FMR LLC. All rights reserved.