Fidelity Forecasts Possibility of Bitcoin Surpassing Gold in Future
Jurrien Timmer from Fidelity Investments believes Bitcoin could potentially surpass gold, but not anytime soon. He estimates this scenario might unfold over the next 10-20 years, depending on Bitcoin’s growth trajectory. Currently, gold remains dominant with a market cap of $20.9 trillion compared to Bitcoin’s $1.7 trillion. Timmer views gold as Bitcoin’s “quieter older sibling,” while others foresee Bitcoin’s volatility and potential decline.
Jurrien Timmer, Director of Global Macro at Fidelity Investments, has indicated that it is “possible” for Bitcoin to surpass gold in market value; however, he does not anticipate this occurrence in the near future. Timmer suggests that if Bitcoin follows an S-curve similar to internet adoption or a power law trajectory, such a scenario could manifest in one to two decades.
Timmer estimates that gold will continue to appreciate at its historical compound annual growth rate (CAGR) of 8%, which has persisted since the 1970s. This CAGR metric is critical in evaluating the returns of assets over time, providing a smooth representation of their value growth. He also posits that should Bitcoin’s digital counterpart grow at a more accelerated pace, gold may exceed its historical growth rates, thereby remaining dominant in the market.
In a recent report by U.Today, Galaxy Digital CEO Mike Novogratz forecasted that Bitcoin could potentially surpass gold by the end of this decade, underlining the vast disparity in their market capitalizations, which stand at $20.9 trillion for gold compared to $1.7 trillion for Bitcoin. Gold continues to maintain its status due to its historical stability and growing valuation amid global economic uncertainties.
While some, like prominent gold advocate Peter Schiff, have criticized Bitcoin for its volatility—predicting it could plunge to as low as $10,000—Bitcoin has indeed seen a downturn of over 33% against gold since late December. In contrast, gold is achieving new all-time highs, demonstrating resilience in the face of global trade tensions.
In conclusion, while Jurrien Timmer of Fidelity Investments acknowledges the potential for Bitcoin to overtake gold, he emphasizes the time required for such a transformation. Historical data suggests that gold will maintain its superior growth trajectory in the foreseeable future. The current economic climate further supports the stability of gold, emphasizing its role as a safe haven amid market fluctuations.
Original Source: u.today
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