Bitcoin Value Can Increase More Rapidly Than Gold, Says Fidelity Executive
A Fidelity Investments executive has stated that while Bitcoin is often compared to gold, its value has the potential to increase more rapidly. Jurrien Timmer, director of global macro at Fidelity Investments, referred to Bitcoin as an “exponential gold” and believes it can function as a store of value and hedge against monetary debasement. Timmer predicts that under certain economic conditions such as high inflation, negative real interest rates, and excessive money supply growth, Bitcoin could perform as well as gold has in the past.
Predictions for Bitcoin’s Market Share and Price
Timmer, who joined Fidelity nearly three decades ago, began exploring Bitcoin in late 2020. In 2021, he expressed his expectation that Bitcoin would gradually gain more market share from gold and predicted that its price would reach $100,000 by 2023. Currently priced around $34,920, Bitcoin’s potential for significant growth remains.
Fidelity’s Involvement in the Crypto Space
Fidelity Investments has a dedicated crypto unit called Fidelity Digital Assets that offers custody and trading services for Bitcoin and Ethereum. Earlier this year, Fidelity Digital Assets expanded access to its Fidelity Crypto platform for retail customers. Additionally, Fidelity submitted a new application for a spot Bitcoin exchange-traded fund (ETF) in June. The decision on multiple Bitcoin ETF applications from asset management companies like Fidelity is pending review by the Securities and Exchange Commission.
Hot Take: Bitcoin’s Potential as a Valuable Asset
According to Jurrien Timmer of Fidelity Investments, Bitcoin has the potential to outperform gold due to its status as an “exponential gold.” As a commodity currency aiming to be a store of value and a hedge against monetary debasement, Bitcoin could thrive in economic conditions characterized by high inflation, negative real interest rates, and excessive money supply growth. With Fidelity’s involvement in the crypto space through its dedicated unit, Fidelity Digital Assets, and its predictions for Bitcoin’s market share growth and price increase, it is clear that the company sees Bitcoin as a valuable asset with significant potential.
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