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Fidelity plans on working with accredited investors and institutions who can invest a minimum of $100,000 USD to form Wise Origin Bitcoin Index Fund. Fidelity is emerging as an alternative to Grayscale who has amassed over $900 Million in digital assets held in custody. At the time of this writing, Bitcoin has a market cap of 213 Billion, a fraction of the Gold market cap. Gold is regularity compared to Bitcoin because of its scarcity similarities.
Winklevoss Twins, owners of Gemini cryptocurrency exchange, have publicly shared their opinion of similarities with gold to give bitcoin a $500,000 per coin valuation. Bitcoin is highly volatile and speculative as it emerges as leading store of value. It will be interesting to watch how the market matures and if the Winklevoss Twins are correct with their predictions. Investors of Fidelity’s Origin Bitcoin Index Fund and Grayscale Bitcoin Trust have a lot to be bullish about.
The Stock-to-flow model was created in January 2019 and has been one of the most accurate prediction models to date. The theory predicts the price of bitcoin to rise significantly based on the asset class being treated similarly to a commodity like gold, silver, or platinum. The model is based on the anticipation of future supply shortages and balanced with production. Bitcoin has a known supply of 21,000,000 and the supply is released to miners with a reduction in rewards overtime.