'Bitcoin is Exponential Gold', Says Fidelitys Director of Global Macro
Jurrien Timmer, Fidelitys Director of Global Macro, recently made a notable statement about Bitcoin, describing it as "exponential gold" and an emerging player on the "store of value" team. Timmer's comments were shared through a series of posts, where he elaborated on Bitcoin's evolving role in the financial ecosystem.
In my view, bitcoin is exponential gold and an aspiring player on the store of value team. My work suggests that the price of bitcoin is driven primarily by the growth in its network, which is in turn driven by bitcoins unique scarcity feature, as well as the monetary and fiscal
Jurrien Timmer (@TimmerFidelity) June 13, 2024
Timmer highlighted Bitcoin's unique position in the market, and compared its growth trajectory to the exponential adoption curves seen in technologies like the internet and mobile phones. He emphasized that Bitcoins scarcity and growing acceptance as a digital asset contribute to its potential as a long-term store of value, akin to gold.
In his posts, Timmer suggested that its adoption rate and network growth are critical factors in its valuation. He noted that while Bitcoin is still in its early stages compared to traditional assets, its adoption is accelerating at an exponential rate, supporting the thesis that Bitcoin could become a significant store of value in the future.
"The chart below shows Bitcoins growing network along a simple power curve. The number of non-zero addresses has converged towards this power curve, with Bitcoins price oscillating around it like a pendulum," he said. "Such is Bitcoins unique series of boom-bust cycles."
Timmer's endorsement aligns with a broader trend among institutional investors recognizing Bitcoins potential. His perspective reinforces the growing legitimacy of Bitcoin within the financial industry, suggesting that it could play a vital role in future investment strategies.
"The growth of Bitcoins network has slowed in recent months, while its price has continued to gain," he concluded. "In my view, this divergence between price and adoption could explain why Bitcoin has slowed down a bit along its path to potential new all-time highs. The pendulum will only swing so far. For the new highs to continue, the network may have to accelerate again."
Text source: Bitcoin Magazine: Bitcoin News, Articles, Charts,
