Fidelity Investments director of worldwide macro Jurrien Timmer appeared on CNBC at the moment to debate his bitcoin worth prediction fashions, market outlook, and opinion on the present rally. Timmer shared a bearish prediction for BTC, bullish inclinations in the direction of the greenback because the world’s reserve foreign money, and a profound misunderstanding of the connection between Bitcoin and gold.
Timmer stated the over 30 % rally that Bitcoin has skilled this month had not been fueled by momentum merchants, indicating that it’s being pushed by natural spot demand as an alternative and might be prolonged additional. The director sees bitcoin reaching $100,000 by 2023.
“This has not been a momentum-fueled run by short-term speculators, so that offers me some confidence that this truly is a fairly sustainable transfer and isn’t a bubble that’s about to burst,” Timmer advised CNBC. “The trajectory is up and up to now there actually is not any proof that this can be a bunch of momentum chasers bringing this as much as $57,000.”
When requested about Bitcoin’s relationship with gold, Timmer stated that regardless of their variations, each are complimentary. The Fidelity director acknowledges the prevalence of Bitcoin however fails to comprehend that it’ll naturally supersede the inferior retailer of worth that’s gold.
“Bitcoin is a extra convex model of gold. It has an ever scarcer provide and gold doesn’t have the community dynamics that bitcoin does, so it is sensible that bitcoin would outperform gold,” Timmer stated. “Bitcoin and gold are two completely different gamers on the identical staff.”
But maybe Timmer’s short-sightedness is extra clearly demonstrated together with his ideas on the dollar-bitcoin dynamics.
“I actually do not assume bitcoin threatens the greenback or the greenback’s reserve standing,” he stated. “Maybe it truly additional ensures that the greenback will preserve its reserve standing…and it is nonetheless in all probability going to be related to the greenback in a roundabout way.”
“Bitcoin’s worth proposition is that in the end it goes from simply being a retailer of worth to additionally being a medium of trade, and that is dependent upon second layer [developments] which are being constructed proper now,” the Fidelity director added.
Bitcoin second-layer is being developed and is being widely used. In this decade, Bitcoin and Lightning will obsolete gold and assist the world notice that the greenback is a shitcoin. It is just pure that many “consultants,” blinded by the asymmetric benefits they get from the status quo, will fail to comprehend that till the final minute.