Fidelity, world's 3rd largest asset firm, released a Thesis on Ethereum Investment

Fidelity, world's 3rd largest asset firm, released a Thesis on Ethereum Investment & It’s Potential as Digital Money and a Yield-Bearing Asset. It is good read.

Some Points I liked:

1. Aspiring Money: Ethereum’s alternative uses, which do not exist on Bitcoin, such as facilitating more complex transactions, give it a unique, money-like utility that should be considered.
2. Ether as a Store of Value: While BTC boasts of its fixed cap, upgrades to Ethereum may directly impact how much burn or issuance occurs on the base layer, which further prevents current metrics from meaningfully informing of potential future outcomes.
3. Ether as a Means of Payment: The variable price of transacting potentially limits payment use cases, while degrading the Ethereum user experience by not being a reliably cheap value transfer network.
4. Ether as a Yield-Bearing Asset.

Conclusion:

Ethereum enables developers to build dapps, many of which are capable of things that could not be done on Bitcoin’s network due to Ethereum’s superior programmability. This has led to some of the largest and most active applications in the digital asset ecosystem being built on Ethereum.

However, does this translate to value for ether the token?

It's shown that, in both theory and data thus far, increased activity on Ethereum’s network drives demand for block space, which, in turn, generates cash flow.

What is also evident, though, is that these various drivers are complex, nuanced, and have changed over time with various protocol upgrades and the emergence of scaling developments, like layer 2, and may change again in the future.

Link to pdf