Posted 2 years ago | by Ben Armstrong
Fidelity Digital Assets Considering Support for Ethereum
In a recent interview Fidelity Digital Assets' president Tom Jessop commented to The Block that his group may support Ethereum as a client asset as soon as 2020. The move comes after Fidelity Digital Assets found substantial demand for Bitcoin, which is the only token it currently offers to clients.
Fidelity Digital Assets has been reluctant to support smaller tokens, as institutional investors aren't as comfortable with assets that have little, or no, track record. The time frame that most crypto investors are comfortable with is substantially shorter than an institutional investor, and this has proven to be a challenge for tokens.
Despite the fact that so few institutions currently hold cryptos, this announcement could spell a new era for Ethereum, as the support of Fidelity Digital Assets may open the Ethereum market up to investors who would not have bought into Ethereum otherwise.
Does the Established Financial System Matter?
The world exists in a constant state of change, and the financial world is no different. While an institutional investor may see an asset's history in decades, as opposed to years, the current financial system is an experiment that is built on volatile ground.
Former Indian Chief Economic Adviser Arvind Subramanian recently commented that the Indian economy is headed for rough times, and this isn't an isolated situation.
Despite repeated assurances from central banks and governments, the incomming global slowdown will be hard to stomach, especially as governments try to enforce economic policies that throw the poor under the bus, while rewarding the rich.
India has been opposed to cryptos, and has done everything but ban them in an attempt to crush the industry within India. The South Asian nation also has a terrible track record of respecting the economic rights of its citizens, many of whom are among the poorest in the world.
Hello Tech – Bye-Bye Central Planning
Fiat currency works for one reason – Faith.
Subramanian said, “Look at electricity generation growth, it's falling off the bottom, and it's never been like this ever. So this is the sense in which I would say this is not just any slowdown, this is the great slowdown that India is experiencing and we should look at it with all seriousness ...and the economy seems headed for the intensive care unit," at a conference held by Harvard University's Centre for International Development.
With these kinds of factors in play, there is going to be an epic crisis of faith. People will gravitate to assets that appear to be far removed from the corrupt governments and banking system that has worked to suppress them for decades, and cryptos are about as far removed an asset as one can find.
Sorry Fidelity, but you might be barking up the wrong tree. Institutional investors are paying attention to the wrong market themes, and have way too much faith in the central planners.
Ethereum, Bitcoin, and a number of other tokens will be successful, if only as a bridge to a world that doesn't rely on corrupt powers that use the poor to create lives of absurd opulence (follow link for an example of this reprehensible social structure). When the fur flies, it will be too late to create a new business model.