#810 Fidelity Thinks Bitcoin Can't Be Replaced

Bitcoin is fundamentally different from any other digital asset. No other digital asset is likely to improve upon Bitcoin as a monetary good because Bitcoin is the most, relative to other digital assets, secure, decentralized, sound digital money, and any improvement will necessarily face trade-offs.

The first was a comparison between gold, Bitcoin, and fiat currencies to call out why they believe Bitcoin is a superior monetary good. They compared those three assets along the durability, divisibility, fungibility, portability, verifiability, scarceness and track record. Bitcoin is superior in every single one of those fronts except for the track record.

Never before in human history had the problem of digital scarcity and a true peer-to-peer electronic cash been solved until Bitcoin was invented.

Bitcoin is the closest a digital protocol could be to enforcing absolute scarcity. In other words, any project or other blockchain network that requires its users to believe they are transacting with a token that has real monetary value likely needs to be directly or indirectly connected to Bitcoin as the ultimate monetary good.

Bitcoin's clear advantage as a store value asset reduces its risk, even in a world that contains an ecosystem of many vibrant digital assets.