Bitcoin’s value can increase more rapidly than gold, with the cryptocurrency being likened to “exponential gold,” according to Jurrien Timmer, Director of Global Macro at Fidelity Investments. Despite Bitcoin often being compared to gold, Timmer believes it aspires to be both a store of value and a hedge against monetary debasement, viewing it as a “commodity currency.”
Timmer suggests that Bitcoin has the potential to perform as well as or even better than gold in certain economic conditions. These conditions include periods of high inflation, negative real interest rates, and excessive money supply growth. He cites examples from history, particularly in the 1970s and the 2000s, when gold experienced significant growth under similar circumstances.
Jurrien Timmer, who has been with Fidelity for nearly 29 years, delved into the world of Bitcoin in late 2020. In 2021, he stated his expectation that Bitcoin would gradually gain more market share from gold and predicted that Bitcoin’s price would reach $100,000 by 2023. At present, the price of Bitcoin hovers around $34,920.
Timmer remains bullish on Bitcoin, viewing it as an aspiring store of value in a world characterized by “ongoing financial repression.” Fidelity has its dedicated crypto unit, Fidelity Digital Assets, which provides Bitcoin and Ethereum custody and trading services. Earlier this year, Fidelity Digital Assets discreetly opened access to its Fidelity Crypto platform for retail customers. In June, Fidelity submitted a fresh application for a spot Bitcoin exchange-traded fund, alongside other asset management companies like BlackRock, WisdomTree, and Invesco, awaiting a decision from the Securities and Exchange Commission regarding their Bitcoin ETF applications.
