JurrienTimmer, Fidelity’s Global Macro director, made a recent statement that was notable about Bitcoin. “exponential gold” A new player in the marketplace “store of value” team. Timmer shared his comments through several posts where he explained Bitcoin’s changing role. financial ecosystem.
Bitcoin is my opinion, exponential gold. It’s a player in the team of store value. The store of value team. 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 compared Bitcoin’s growth curve to that of the Internet and mobile phone technologies, which have seen exponential growth. Timmer emphasized Bitcoin’s growing popularity as a digital currency and its scarcity, which contribute to the potential of it as a store of long-term value.
Timmer, in his blog posts, suggested that the adoption rate of Bitcoin and its network growth were critical to its value. While Bitcoin was still in an early stage compared to other assets, Timmer said that its adoption rate is increasing at a rapid pace, supporting his thesis that Bitcoin may become a major store of wealth in the future.
“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 backing is consistent with an increasing trend of institutional investors realizing Bitcoin’s value. This perspective confirms Bitcoin’s growing credibility within the financial Industry, suggesting it could be a crucial role in future investments strategies.
“The growth of Bitcoin’s network has slowed in recent months, while its price has continued to gain,” He said. “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