Jurrien Timer, the macro director working at Fidelity has stated that He believes Bitcoin will one day exceed Gold’ value in market capitalization. However the event will take time to unfold
Growth Projections
Timer’s prediction for BTC to surpass gold in market value is based on a comparative growth model. The model is highlighted by the power law adoption or the internet s-curve pattern also discussed by macro investors Raoul Pal. the expected occurrence of such event is in the next decade if the current 8% compound annual growth rate since 1970 remains intact
Contrasting Perspectives
The perspective of Timmer stands opposite to MicroStrategy founder Michael Saylor who predicts Bitcoin’s market value at $500 trillion by taking over gold along with sovereign wealth and real estate.
Market Context
The analysis arrives at a time of major market instability because Bitcoin dropped below $84,000 on March 28 which resulted in a 33% decrease in its value relative to gold since December. On the market gold continues rising to new all-time high levels which highlights and reassures its status as an established store of value and safe haven during uncertain times.
Institutional Support
Price variations in Bitcoin fail to deter significant financial institutions from demonstrating their faith in cryptocurrency. Fidelity as well asBlackRocks invested approximately $89 million into Bitcoin ETFs where Fidelity’s Bitcoin fun ETF received $97 million as its largest inflow.
Bitcoin vs. Gold: Closing the Gap
The discussion among institutions has moved beyond whether Bitcoin belongs in the same discussion with gold to focus on how and when Bitcoin will achieve parity with this tangible asset even though Fidelity maintains that gold remains superior due to its proven stability.
