Research
Blockchains as emerging economies
A fundamentals-based framework to assess the economic activity of a blockchain may help asset allocators in their investment decision-making.
Key Takeaways
- Cryptocurrencies are digital assets that specifically reference the native currency of a blockchain and represent the primary unit of account and medium of exchange in that local economy.
- Similar to traditional economies, digital economy currencies derive their value from explicit demand for the currency in accessing a broad network of goods and services, and resilience to loss from theft, network disruptions, or expansionary monetary policies.
- Economic activity of a blockchain can be assessed through a GDP-like lens attributed to investment, consumption, government spending, and net exports.
- Fidelity’s fundamentals-based framework for digital asset selection and portfolio construction may help asset allocators in their investment decision-making.
- This article utilizes the Ethereum network and its local currency, ether, to illustrate Fidelity’s framework. Measuring economic activity on blockchains has widespread applications for our investment approach, and is core to our asset allocation views.
Get the full white paper
Blockchains as emerging economies
Next steps to consider
Digital Assets
Explore the exciting world of digital assets, with a focus on blockchain technology, cryptocurrency investing, and more.
Learn more
Fidelity Alternative Investment Solutions
Diversify, protect, and even potentially enhance your clients’ portfolio returns with our alternative investment solutions.
Learn more
Related insights
View all
Research
Blockchains as emerging economies
A fundamentals-based framework to assess the economic activity of a blockchain may help asset allocators in their investment decision-making.
Investing Ideas
When your clients want to talk bitcoin, here’s what to know
As the cryptocurrency matures, investors want to have a better understanding of it. Here are 7 things to inform those conversations
Investing Ideas
Is it too late to buy crypto?
Factors to watch from now until July.
For important information, see the full linked content.
1198958.1
93E439F3BC734CA997B8026F970D44D7