Fidelity Researcher: Bitcoin is Exponential Gold
According to Jurrien Timmer, director of macroeconomic research at Fidelity Investments, Bitcoin should be seen as “exponential gold” and a “commodity currency” that serves as both a store of value and a hedge against monetary depreciation.
Timmer notes that while gold is considered a form of money, it is not practical as a medium of exchange due to its deflationary nature and limitations.
Therefore, investors primarily hold it as a store of value, and this is why Bitcoin is often compared to gold. During periods of high inflation, when real interest rates are negative and money supply is abundant, gold typically gains market share relative to GDP.
Timmer believes that Bitcoin has the potential to also gain market share in these conditions and “become a player on the same team” as gold.
Last year, Timmer pointed out that unlike unprofitable technology stocks, Bitcoin has strong fundamentals that will likely only become more attractive over time.
