Jurrien Timmer, Fidelity's global macro director, shared his views on Bitcoin, the world's leading cryptocurrency, on X.
Fidelity Executive Sees Bitcoin as the Gold of the Digital Age
Jurrien Timmer explores Bitcoin's potential trajectory and positions it as the gold of the digital age.
Describing the digital asset as a commodity currency intended to be a store of value and a hedge against monetary depreciation, Timmer described Bitcoin as the gold of the digital age.
Bitcoin is on the move again (following the pattern of previous boom-bust cycles, so far). What to make of it? Let’s revisit my thesis from late 2020: 🧵 pic.twitter.com/gNFtbOScr2
— Jurrien Timmer (@TimmerFidelity) November 1, 2023
Timmer drew a distinction between gold's primary function today as a store of value and Bitcoin's potential to play a similar role in the digital age.
Comparing the historical importance of gold as money to the possible role of Bitcoin, Timmer noted that gold has limited utility in modern transactions due to its deflationary and bulky nature.
Emphasizing the reasons why Bitcoin is often juxtaposed with gold, Timmer pointed to historical periods such as the 1970s and 2000s when gold thrived during inflationary regimes, negative real rates, or excessive money supply growth.
Timmer thinks Bitcoin has the potential to serve a similar purpose in times like these.
The two entities are frequently compared. Bitcoin, while intangible, captures many of the store-of-value properties of gold in a digital format. Its decentralized nature, limited supply, and resistance to censorship make it an attractive digital substitute for gold.
*This is not investment advice.
