Why This Constancy Investments Director Believes Bitcoin Is ‘Exponential Gold’

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The Director of World Macro at Constancy Investments, Jurrien Timmer, lately equipped insights into the possibility of the flagship cryptocurrency, Bitcoin, and went so far as labeling the crypto token as “exponential gold.”

A Look At Bitcoin’s Adoption Curve

In a submit launched on his X (previously Twitter) platform, Timmer discussed that Bitcoin’s shortage and adoption curve doubtlessly permit it to be a “high-powered hedge towards financial shenanigans,” most likely alluding to the truth that the token’s options make it a really perfect strategy to hedge towards inflation. Because of this he sees the token as “exponential gold.”

Bitcoin

Supply: X

He additional elaborated on Bitcoin’s adoption curve, mentioning that it has up to now adopted a “conventional S-curve form,” which puts it in excellent corporate with different main inventions that went thru such an adoption adventure. Certainly one of them is cell phones, as Timmer famous that Bitcoin’s adoption curve in 2020 resembled that of cell phones within the ‘80s and ‘90s. 
Bitcoin 1

Supply: X

Bitcoin, alternatively, turns out to have moved to every other degree within the adoption curve, as Timmer mentioned that the “real-rate narrative modified from dovish in 2020 to hawkish in 2022.” He additional instructed that Bitcoin has moved previous the degree of a fast upward thrust as its adoption curve has flattened out. With this, Timmer believes that it now stocks similarities with the adoption curve of the web within the 2000s because the crypto token “has now not made a lot growth since 2021.”

Bitcoin Volatility: Just right Or Unhealthy?

In a next submit, Timmer put Bitcoin’s volatility in point of view as he when put next it with different asset categories. First, he shared a risk-reward chart for the pandemic and post-pandemic generation starting from 2020 to this 12 months. The SPX gave the impression to give you the very best risk-reward with just about 24% go back. 
Fidelity Investments Director

Supply: X

Timmer then went directly to percentage every other chart, which integrated Bitcoin this time round. The key cryptocurrency particularly stood out from the remainder, as he discussed that Bitcoin was once “in a special universe,” with a 58% go back. 

Bitcoin 3

Supply: X

Bitcoin’s excessive volatility turns out to have contributed to such returns in no small manner, as Timmer discussed that the crypto token’s large drawdowns additionally include massive good points. To force house his level, he shared every other chart that confirmed drawdowns and rallies, which quite a lot of asset categories have skilled from their 2-year low and high, respectively. 

Fidelity Investments Director

Supply: X

The chart confirmed that Bitcoin skilled a 54% drawdown from its two-year excessive however could also be up through 84% from its low in the similar length. 

That is extra spectacular when one considers how different asset categories have fared in the similar length as Timmer mentioned that Govt bonds “can’t cling a candle” to Bitcoin’s risk-reward math.  

Bitcoin price chart from Tradingview.com (Crypto)

BTC jumps again to $34,800 | Supply: BTCUSD on Tradingview.com

Featured symbol from Capital.com, chart from Tradingview.com

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