Jurrien Timmer is Fidelity’s Global Macro Director. He recently made an interesting statement regarding Bitcoin. “exponential gold” The emerging players on the “store of value” team. Timmer elaborated in a series posts on the evolving role of Bitcoin within the financial eco-system.
Bitcoin is a store of value and exponential gold in my opinion. My work suggests that the price of bitcoin is driven primarily by the growth in its network, which is in turn driven by bitcoin’s unique scarcity feature, as well as the monetary and fiscal…
— Jurrien Timmer (@TimmerFidelity) June 13, 2024
Timmer stressed Bitcoin’s position as a unique digital asset and compared it to exponential growth curves in other technologies, such as mobile phones and the internet. Timmer emphasized Bitcoin’s growing popularity as a digital currency and its scarcity, which contributes to the potential of it as a store of long-term value.
Timmer made the suggestion in his blog posts that Bitcoin’s adoption rate and its network growth were critical to its value. Timmer noted that Bitcoin, while still at its infancy compared with traditional assets, is growing exponentially in terms of adoption, which supports the theory that Bitcoin can become an important store of value.
“The chart below shows Bitcoin’s growing network along a simple power curve. The number of non-zero addresses has converged towards this power curve, with Bitcoin’s price oscillating around it like a pendulum,” “He said” “Such is Bitcoin’s unique series of boom-bust cycles.”
Timmer’s support is in line with the broader trend of institutional investors who are recognizing Bitcoin’s potential. Timmer’s perspective reinforces Bitcoin’s growing credibility within the financial industries, suggesting it could play an important role in future investments strategies.
“The growth of Bitcoin’s 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.”
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Source: bitcoinmagazine.com
