Fidelity Predicts Governments Buying Bitcoin

Fidelity has published a report on cryptocurrency trends for 2022 and the outlook for the industry. HomeExperts consider the adoption of cryptocurrency at the state level the trend of this year.

The last two years the main trend in the marketwas the adoption of cryptocurrency by institutional investors. Digital assets have officially entered the legislative and political arena. This year, states will have to decide on their attitude towards crypto assets.

Governments around the world have taken various major steps towards digital assets in 2021, demonstrating different approaches. 

The Fidelity report examines the two opposing positions of China and El Salvador. Only time can determine the correctness of the policies chosen by countries, but the authors of the document note:

A complete ban on cryptocurrencies is unlikely. It will lead to a significant loss of opportunity and wealth.

According to analysts, now in the crypto industry"high stakes game theory" applies. If bitcoin holds, then the countries that own the asset today will be in a better position. Lagging governments will be forced to acquire the first cryptocurrency as a form of insurance. Therefore, states can rush to acquire bitcoin today, hedging future costs.

The first to legalize bitcoin are developing countries with a high percentage of dependence on cross-border transfers. So, Tongo is considering investing $ 750 million of budget funds in bitcoin.

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