Fidelity Investments Director sees Bitcoin as a hedge against economic instability, predicts $100,000 price by 2023
Bitcoin, the world's most popular cryptocurrency, recently experienced a brief surge in price, almost reaching $36,000, before dropping back to around $34,700. Despite this decline, Bitcoin remains higher by 1.25% over the past 24 hours. This volatility in Bitcoin's price is noteworthy, particularly as other risk assets are performing well.
One of the key figures in the financial world, Jurrien Timmer, Director of Global Macro at Fidelity Investments, has shared his thoughts on Bitcoin's potential. In a recent tweet, Timmer referred to Bitcoin as 'exponential gold', suggesting that it could serve as a potential hedge against inflation and monetary debasement.
Bitcoin is often compared to gold due to its finite supply and its use as a store of value. However, Timmer's 'exponential gold' comment suggests that Bitcoin's value can increase more rapidly than that of gold. This is due to the exponential nature of Bitcoin's price movements, which can see it quickly reach new highs (and lows).
Fidelity Investments, a multinational financial services corporation, has shown considerable interest in cryptocurrencies. The firm has a dedicated crypto unit, Fidelity Digital Assets, which offers Bitcoin and Ether custody and trading services. They have also applied for a spot Bitcoin exchange-traded fund.
Timmer's comments, along with Fidelity's actions, indicate a growing acceptance of Bitcoin and other cryptocurrencies in the traditional financial world. Despite the current volatility, Timmer predicted a Bitcoin price of $100,000 by 2023, showing a strong belief in the cryptocurrency's potential.
Bitcoin's recent price movements highlight the volatility inherent in the cryptocurrency market. However, the comments from Fidelity's Jurrien Timmer suggest that this volatility could be a sign of potential growth, with Bitcoin serving as a hedge against economic instability. As more traditional financial institutions like Fidelity show interest in cryptocurrencies, it could lead to increased acceptance and integration of these digital assets into the mainstream financial system.