A few months after questioning bitcoin’s store of value status, Tom Jessop, the head of Fidelity Digital Assets, stated that BTC and the entire industry are at a “tipping point” in terms of maturation and global adoption. He breached the COVID-19 pandemic and the “ultralow” interest rates as the most significant reasons behind crypto’s rise.
Tipping Point for Bitcoin Adoption
Fidelity Investments has been among the most receptive institutions when it comes down to the cryptocurrency industry for years through its crypto arm – Fidelity Digital Assets.
The branch’s President, Tom Jessop, gave somewhat surprising for some comments in late 2020 where he noted that bitcoin is “not quite there” as a store of value because of its enhanced volatility.
During a more recent interview with MarketWatch from this week, though, he seemed significantly more bullish on the general perception of BTC and the entire crypto space.
He indicated that the industry is at its “tipping point” in terms of mass adoption. Furthermore, Jessop predicted that the trend will only intensify “at a rapid pace” in the coming years, which could make digital assets a vital part of the global financial scene.
Pandemic and Interest Rates to ‘Blame’
Similar to others who have outlined the COVID-19 pandemic as the primary reason behind the massive demand for bitcoin, Jessop made the same assertion.
“I think you’ve had the accumulated experience of now roughly 12 years of the bitcoin blockchain being operative since the genesis block in early 2009. And the pandemic, quite frankly, was a catalyst for institutional adoption, and specifically bitcoin and the narrative, or use-case, around digital gold.”
As previously reported, legendary hedge fund manager Paul Tudor Jones III was among the first who openly praised bitcoin for its safe haven qualities shortly after COVID-19 infiltrated the Western world last year.
Jessop also believes there could be more to the story. World governments launched an environment “where we have seen unprecedented monetary and fiscal stimulus” in response to the pandemic and reduced interest rates to “ultralow” levels.
Ultimately, it was the combined consequences of the pandemic and the governments’ actions that highlighted the benefits of the cryptocurrency industry and bitcoin in particular.
Featured Image Courtesy of Medium