Jurrien Timmer, Head of Global Macro at Fidelity, 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 across a series of posts, where he detailed bitcoin's changing role in the financial ecosystem.
<blockquote class="twitter-tweet”>
In my opinion, 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 of its network, which in turn is driven by bitcoin's unique scarcity characteristic, as well as monetary and fiscal factors…
– Jurrien Timmer (@TimmerFidelity) twitter.com/TimmerFidelity/status/1801293915917623550?ref_src=twsrc%5Etfw”>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 such as the Internet and mobile phones. He emphasized that bitcoin's scarcity and growing acceptance as a digital asset contribute to its potential as a long-term store of value, similar to gold.
x.com/TimmerFidelity/status/1801293917523935525″> x.com/TimmerFidelity/status/1801293917523935525″>Jurrien Timmer
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 major store of value in the future.
“The graph below shows the growing bitcoin network along a simple power curve. The number of non-zero addresses has converged towards this power curve, with the price of bitcoin swinging around it like a pendulum,” he said . “This is bitcoin's unique series of boom and bust cycles.”
x.com/TimmerFidelity/status/1801293919738798092″> x.com/TimmerFidelity/status/1801293919738798092″>Jurrien Timmer
Timmer's endorsement aligns with a broader trend among institutional investors recognizing bitcoin's potential. His outlook reinforces bitcoin's growing legitimacy within the financial industry, suggesting it could play a vital role in future investment strategies.
“The growth of the bitcoin network has slowed in recent months, while its price has continued to rise,” he concluded. “In my opinion, this divergence between price and adoption could explain why bitcoin has slowed a bit on its way to possible new all-time highs. The pendulum will only swing so far. For new highs to continue, the network may have to accelerate again.”
<script async src="https://platform.twitter.com/widgets.js” charset=”utf-8″>
