Fidelity’s Timmer Explains Why Bitcoin Belongs Among Top Investments

TLDR

• Jurrien Timmer from Fidelity believes Bitcoin deserves a top spot in investment returns alongside gold and international equities.
• Timmer argues that Bitcoin’s scarcity makes it a valuable asset, especially when fiat currencies weaken.
• Despite Bitcoin’s recent volatility, Timmer remains optimistic about its long-term potential as an investment.
• Timmer highlights the balance between Bitcoin and gold, noting that both assets are benefiting from economic shifts.
• Timmer maintains that Bitcoin’s halvening-driven cycles are still relevant, even with growing institutional involvement.

Jurrien Timmer, director of global macro at Fidelity, believes Bitcoin belongs at the top of the investment returns table. He compares Bitcoin with gold and international equities, pointing out its unique qualities. According to Timmer, the ongoing boom in artificial intelligence (AI) continues to fuel U.S. large-cap stocks, but Bitcoin stands as a strong contender.

Timmer Optimistic About Bitcoin’s Long-Term Outlook

Timmer argues that Bitcoin’s scarcity makes it a valuable asset. He explains that Bitcoin’s value tends to increase when fiat currencies weaken. As the U.S. dollar faces challenges, Bitcoin stands out as a store of value.

Timmer’s earlier predictions have sparked debates among investors. In May, he predicted that Bitcoin might eventually surpass gold later in the year. Although Bitcoin’s performance has been volatile, he maintains that it still holds strong potential for the future.

In late August, Timmer stated that Bitcoin and gold were “right in balance” with each other. At the time, Bitcoin reached a new all-time high. However, Bitcoin’s rally stalled as gold continued to outperform the cryptocurrency in September.

Timmer remains optimistic about Bitcoin’s future despite gold’s recent performance. He predicts that the Federal Reserve’s potential rate cuts could push Bitcoin and gold prices higher. Both assets are set to benefit from a return to quantitative easing (QE), which could fuel their growth.

Timmer believes that Bitcoin’s halvening-driven four-year cycles are still in play. This view contrasts with some analysts who claim institutional investors have altered Bitcoin’s cycle. Timmer points out that the global money supply and dollar strength still influence Bitcoin’s growth.

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