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Recently, Jurrien Timmer, Director of International Markets, compared the growth of Bitcoin and Ethereum.
As both networks “grow steadily,” Timmer says Ethereum is growing faster. He also points out that the valuation of $ ETH (as measured by market cap / network ratio) is lower than that of $ BTC because investors seem to be seduced by Bitcoin’s superior dynamics of scarcity.
On March 1, Jurrien Timmer, Director of International Markets at Fidelity Investments, published a 12-page research paper on Bitcoin.
After studying Bitcoin, he came to some conclusions. They are as follows:
- “… Bitcoin has become mainstream, more and more investors are already considering it a legitimate asset class.”
- “… Bitcoin has both compelling supply dynamics (S2F) and demand dynamics (Metcalfe’s law).”
- “… Bitcoin is gaining trust, and as a digital counterpart to gold, but with greater prominence… Bitcoin will eventually take a larger market share of gold. “
Timmer says that “if gold is now competing with bonds and bond yields are near zero (or negative), it might make sense to“ replace some of the portfolio’s nominal bond yields with gold and assets that behave like gold ”.
He ended with the words:
“If Bitcoin is a legitimate store of value, more scarce than gold, and accompanied by potentially exponential demand dynamics, then is it worth considering for inclusion in a portfolio now (at some reasonable level and at least along with other alternatives such as real estate , commodities and some index-linked securities)? Despite the many risks discussed, including factors such as volatility, competition and policy interference, for some the answer may well be yes, at least insofar as it is only applicable to components on the 40 side. from 60/40. For these investors, the question about Bitcoin may not be “will”, but “how much?” ‘”.
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