The Bitcoin Cycle Is Very Far From Done, And Miners Intend To Stay For The Prolonged Haul: Report On Fidelity.

The Bitcoin Cycle Is Very Far From Done, And Miners Intend To Stay For The Prolonged Haul: Report On Fidelity.

2022-01-14 | Selina Mathew

The Bitcoin Cycle Is Very Far From Done, And Miners Intend To Stay For The Prolonged Haul: Report On Fidelity.

Fidelity Digital Assets, the cryptocurrency arm of Fidelity Investments, that manages $4.2 trillion in assets, provided its "two sats" on the era of online assets. The primary findings focused on the behaviour of miners as well as the acceptance of the Bitcoin (BTC) network.

The company revealed several views into the realm of Bitcoin mining in its annual report, which was issued the previous week. According to the research, the hash rate recovery in 2021 "was quite astonishing," especially given that the globe's second-largest economy, China, outlawed Bitcoin in 2021. The recovery in hash rate following the ban, owing to BTC's hash power being "more broadly dispersed throughout the globe," has shown that miners are focused on long-term earnings.

The assertions corresponded to the current selling behaviour of miners. A key on-chain indicator indicates that Bitcoin miners are in "huge" BTC accumulating mode, with no intention of selling.

Fidelity offered some fascinating forecasts about additional nation-states embracing BTC as legal money when it comes to orange-pilling whole nations. There is a high-stakes game theory at work here, in which nations that acquire some Bitcoin now would be best situated comparatively than their counterparts if Bitcoin usage rises. As a result, we will not be shocked to see more sovereign nation-states buy bitcoin in 2022, as well as possibly even a central bank.

Their remarks came after a veteran Tonga MP stated that the country may embrace BTC by late 2022. Increased regulation as well as better products, in summary, will start opening the cryptocurrency industry, "putting a bigger percentage of the hundreds of billions in conventional assets into the cryptocurrency environment." When coupled with miners' holding, it has the potential to stretch the cycle and propel BTC to record highs.

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