Cryptocurrency: Why is Fidelity Interested?
Digital currencies like Bitcoin and Ethereum continue to garner attention in economic markets and the financial sector is taking note. Indeed, Abby Johnson, CEO of brokerage giant Fidelity
, recently revealed that her company was actively exploring cryptocurrencies...and realizing gains.
In a recent Fortune article, Hadley Stern of Fidelity Labs explained why the company is mining these digital assets, and making money at the same time.
"Think of it as an experiment. The real reason we began mining, and still do, is to learn how the network works, how consensus works, how difficulty levels work," says Stern, referring to aspects of the mining process, which involves a network of computers competing to solve complex math problems.
Although the profits are nice, this is not the point for Fidelity. According to Stern, the real point in mining is to learn about the burgeoning cryptocurrency market.