Bitcoin soared through much of 2021, helped on by the likes of Tesla TSLA and El Salvador embracing the cryptocurrency (though Tesla CEO Elon Musk is increasingly backing the meme-based dogecoin).
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The bitcoin price, hitting an all-time high of almost $70,000 per bitcoin in November, has since crashed back, losing around 40% of its value and wiping $1 trillion from the combined crypto market.
Now, Wall Street giant Fidelity has said other countries and even a central bank could follow El Salvador and Tesla into bitcoin this year—predicting those that buy bitcoin while the price is low "will be better off competitively than their peers."
Sign up now for the free CryptoCodex—A daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every weekdayMORE FROM FORBES'Visa Of Digital Assets'-Bank Of America Issues Shock Ethereum Rival Prediction As The Price Of Bitcoin, BNB, Solana, Cardano And XRP Suddenly SlideBy Billy Bambrough The bitcoin price has struggled over the last two months, losing almost 40% of its value. SOPA Images/LightRocket via Getty Images
"There is very high stakes game theory at play here, whereby if bitcoin adoption increases, the countries that secure some bitcoin today will be better off competitively than their peers," Fidelity analysts Chris Kuiper and Jack Neureuter wrote in a note, adding they "wouldn't be surprised to see other sovereign nation states acquire bitcoin in 2022 and perhaps even see a central bank make an acquisition."
"I agree with Fidelity, of course, but still astonishing to read this on bitcoin adoption game theory in such a mainstream financial report," bitcoin advocate Alex Gladstein, chief strategy officer at the Human Rights Foundation, said via Tw...