Jurrien Timmer, director of macroeconomic research at Fidelity Investments, called bitcoin ‘exponential gold’ and a ‘commodity currency’, aiming to become a store of value and a hedge against money debasement.
“Gold is, of course, money. But it is too deflationary and cumbersome to be used as a medium of exchange. Therefore investors hold it primarily as a store of value — and that is one of the many reasons why bitcoin is often compared with gold,” shared his thoughts expert.
In periods of high inflation, when real rates are negative and/or the money supply is excessive, the precious metal “gains share of the market relative to GDP,” Timmer noted.
In his view, bitcoin has the potential ‘to join that same team’.
Last year the researcher noted that, unlike unprofitable tech stocks, the first cryptocurrency has a fundamental basis that is likely to become more attractive over time.
In June, Fidelity Investments filed for a spot bitcoin-ETF.
In October, the investment company’s analysts called digital gold the safest, most decentralized and scarce cryptocurrency in the world.