Bitcoin’s Value Can Outpace Gold, Says Fidelity Executive Bitcoin (BTC) may be a form of “exponential gold” capable of outperforming the precious metal in times of high inflation, wrote Fidelity’s Global Macro Director Jurrien Timmer on Wednesday.
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n a series of threads posted on X this week, Timmer outlined how Bitcoin’s risk-return ratio is in a “different universe” from traditional asset classes
like gold, stocks, or treasury debt. “In my view, Bitcoin is a commodity currency that aspires to be a store of value and a hedge against monetary debasement,” he wrote on Wednesday.
“I think of it as exponential gold.” While recognizing gold as “money,” the analyst said it is “too deflationary and clunky to be used as a medium of exchange.” Nevertheless, the precious metal has gained market share relative to
GDP during periods of excessive money supply growth, such as in the 1970s and 2000s. Bitcoin bullish hedge fund managers from Paul Tudor Jones to BlackRock’s Larry Fink have frequently likened Bitcoin to “digital gold” for its reliable scarcity in comparison to dollars
or other forms of fiat currency. When the Federal Reserve reduced interest rates in 2020,
Bitcoin and gold surged to new all-time highs within months. Likewise, each experienced major retracements
in 2022 as interest rates climbed, but both have recovered remarkably well since then.
