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Fidelity’s Director of Global Macro, Jurrien Timmer, has recently described Bitcoin as “exponential gold” and an emerging asset in the “store of value” category. In a series of posts, Timmer elaborated on Bitcoin’s unique position in the market, comparing its growth trajectory to the exponential adoption seen in technologies like the internet and mobile phones. He emphasized Bitcoin’s scarcity and its increasing acceptance as a digital asset, highlighting its potential as a long-term store of value similar to gold.
Timmer noted that Bitcoin’s adoption rate and network growth are critical factors in its valuation. He pointed out that while Bitcoin is still in its early stages compared to traditional assets, its adoption is accelerating at an exponential rate. According to Timmer, the number of non-zero Bitcoin addresses follows a power curve, with Bitcoin’s price oscillating around it like a pendulum. He suggested that Bitcoin’s boom-bust cycles are part of its unique growth pattern.
Institutional investors, including Timmer, are increasingly recognizing Bitcoin’s potential. His perspective reinforces the growing legitimacy of Bitcoin within the financial industry, hinting at its vital role in future investment strategies. Despite recent slowdowns in network growth, Timmer believes that Bitcoin’s price gains could lead to new all-time highs if the network’s adoption accelerates again.
