Fidelity Executive Sees Bitcoin as ‘Exponential Gold’ with Potential for Rapid Growth
Jurrien Timmer, the director of global macro at Fidelity Investments, believes that Bitcoin has the potential to outpace gold in terms of value appreciation.
Timmer, who joined Fidelity nearly 29 years ago, has been closely monitoring Bitcoin since late 2020. He sees Bitcoin as a commodity currency striving to establish itself as a store of value and a hedge against monetary debasement, often referring to it as “exponential gold.” This viewpoint comes as Bitcoin’s price has displayed an upward trend this year.
Timmer’s confidence in Bitcoin stems from his assessment that under certain economic conditions, such as periods of high inflation, negative real interest rates, and excessive money supply growth, Bitcoin could perform at least as well as gold has in the past. Historical instances, including the 1970s and the 2000s, serve as notable examples of such conditions. In 2021, Timmer publicly expressed his expectation that Bitcoin would gradually capture a larger market share from gold and predicted that Bitcoin’s price could reach $100,000 by 2023, although the current Bitcoin price hovers around $34,920.
Fidelity Investments, which operates Fidelity Digital Assets, a dedicated crypto unit offering Bitcoin and Ether custody and trading services, has been actively involved in the cryptocurrency space. Earlier this year, the company discreetly granted retail customers access to its Fidelity Crypto platform. In June, Fidelity submitted a fresh application for a spot Bitcoin exchange-traded fund (ETF), building on its initial filing in 2021. Various asset management firms, including Fidelity, are eagerly awaiting a decision from the Securities and Exchange Commission, which is currently reviewing multiple Bitcoin ETF applications.
Clever Robot News Desk 5th November 2023
Related Article
