Fidelity's global macro director, Jurrien Timmer, has drawn a comparison between Bitcoin and gold, stating that these assets are on the same team. He noted their response to monetary expansion (M2).
Parallels Between Bitcoin and Gold
Timmer drew an analogy between physical gold and its digital counterpart, Bitcoin. He highlighted that both assets play on the same team, though Bitcoin behaves as a more high-risk player.
Impact of M2 Money Supply
The director noted that gold has had a linear correlation with M2 over recent decades, while Bitcoin has exhibited exponential growth during times of significant liquidity expansion.
Future Prospects
Timmer described Bitcoin as 'exponential gold,' noting its growing role in the store of value market. Meanwhile, Bitcoin faces challenges in reaching the $100,000 mark, despite recent moves towards it.
Bitcoin and gold remain key players in the market, responding differently to financial changes. Only time will tell their future impact on the economy.
