Jurrien Timmer, Director of Global Macro at Fidelity, has provided a significant perspective on Bitcoin's future by examining its network growth and scarcity features. Timmer emphasizes the correlation between Bitcoin's value and the expansion of its network, drawing on Metcalfe's Law, which posits that a network's value is proportional to the square of its users.
Timmer points to the adoption curve for Bitcoin, noting a consistent power-law distribution over time. This pattern aligns with the S-curve typical of new technology adoption, indicating not just sporadic growth but a predictable, sustained increase. The analysis is supported by a chart illustrating the number of nonzero Bitcoin addresses over time, overlaying a standard power regression curve.
In addition to network growth, Timmer emphasizes the role of scarcity in shaping Bitcoin's value. The stock-to-flow model, which correlates price with the scarcity of supply, suggests that as Bitcoin becomes more challenging to mine and the rate of new supply diminishes, the price could rise with steady or increasing demand. This interplay between scarcity and demand is crucial in understanding Bitcoin's price movements, especially in response to changing economic policies, such as those set by the Federal Reserve.
While recent price charts may indicate bearish trends, Timmer sees beyond short-term fluctuations. He suggests that volatility in Bitcoin's price is not merely noise but part of a larger pattern of growth and acceptance. Timmer's analysis provides a reasoned perspective for both long-term observers and participants in the cryptocurrency market.
Overall, Fidelity's Director of Global Macro offers a comprehensive view of Bitcoin's trajectory, considering network growth, adoption patterns, scarcity, and the broader dynamics that shape its value in the evolving financial landscape.
The SEC is considering Ethereum ETF proposals from Grayscale, Fidelity, and Bitwise, with public feedback sought on market dynamics and regulatory concerns.
WeiliangBitcoin ETFs surge with iShares and Fidelity leading in BTC holdings, affirming mainstream confidence. Bullish sentiment persists, impacting price trajectory. Milestone adoption signifies a changing narrative, shaping the future of cryptocurrency investments.
Xu Lin这家庞大的资产管理公司去年被拒绝批准成立Wise Origin信托；现在，它正在排队等待获批比特币现货交易基金（ETF）。
CointelegraphBlockFi insists that Emergent Fidelity is not eligible for a bankruptcy case as it has no assets or property except the 56 million Robinhood shares.
cryptopotatoYet another crypto firm is forced to lay off workers to cope with the bear market.
cryptopotatoFidelity Investments has filed a trademark application that reveals the financial services giant’s plans for the metaverse and digital collectibles.
dailyhodlIts applications cover NFTs, metaverse investments and virtual real estate investing.
BeincryptoAnthony Pompliano made similar remarks on Monday, noting that Bitcoin’s “value and price are diverging” and that “weak hands are selling to strong hands.”
CointelegraphThe expansion may not necessarily include Mercado Bitcoin acquiring a Mexico-based crypto exchange to operate in the country.
CointelegraphFidelity Digital Assets, the digital arm of Fidelity Investments, is set to double its staff this year to reinforce and ...
Bitcoinist
