Jurrien Timmer, Fidelity\u2019s Director of Global Macro, 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 through a series of posts, where he elaborated on Bitcoin’s evolving role in the financial ecosystem.<\/p>\n
In my view, 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 in its network, which is in turn driven by bitcoin\u2019s unique scarcity feature, as well as the monetary and fiscal\u2026<\/p>\n
\u2014 Jurrien Timmer (@TimmerFidelity) June 13, 2024<\/a><\/p>\n Timmer highlighted Bitcoin’s unique position in the market, and compared its growth trajectory to the exponential adoption curves seen in technologies like the internet and mobile phones. He emphasized that Bitcoin\u2019s scarcity and growing acceptance as a digital asset contribute to its potential as a long-term store of value, akin to gold.<\/p>\n <\/a><\/p>\n Jurrien Timmer<\/a><\/p>\n 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 significant store of value in the future.<\/p>\n “The chart below shows Bitcoin\u2019s growing network along a simple power curve.\u00a0The number of non-zero addresses has converged towards this power curve, with Bitcoin\u2019s price oscillating around it like a pendulum,” he said. “Such is Bitcoin\u2019s unique series of boom-bust cycles.”<\/p>\n