Jurrien Timmer on Bitcoin as "exponential gold"
Jurrien Timmer, Fidelity's Director of Global Macro, described Bitcoin as an emerging store of value, highlighting Bitcoin's scarcity and increasing adoption as key drivers of its potential as a long-term store of value, similar to gold.
The growth of Bitcoin compared to other technologies
Timmer compared Bitcoin's growth to the exponential spread of the internet and mobile technologies, highlighting accelerated adoption and network growth as key factors in Bitcoin's valuation.
The increasing acceptance of Bitcoin
Although Bitcoin is still in its infancy compared to traditional assets, adoption is increasing rapidly, which could make it a significant store of value in the future. Timmer pointed to Bitcoin's characteristic boom-bust cycles, noting that the number of non-zero addresses on its network follows a power curve, with the Bitcoin price oscillating around this curve like a pendulum.
Bitcoin and institutional investors
Timmer's view reflects a trend among institutional investors who recognize Bitcoin's potential, underpinning its growing legitimacy in the financial sector. He also noted that although Bitcoin's network growth has slowed recently, its price has continued to rise. To reach new highs, it may be necessary for network growth to pick up steam again.
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