Fidelity, the second largest investment fund after Blackrock in the ETF race, sees bitcoin reaching $15 trillion within seven years.
Fidelity bets on Bitcoin
With $3.6 trillion under management, Fidelity is one of the world’s largest asset managers. The American fund expects bitcoin to grow from $800 billion to $15 trillion before the end of the decade.
In any case, this is the opinion of Jurrien Timmer, director of Global Macro at Fidelity Investments. The latter shared his point of view last week on X (formerly Twitter).
For Mr. Timmer, bitcoin is akin to “exponential digital gold”. He is a “obvious since the monetary and fiscal stimuli of 2020”.
“In a regime of monetary inflation, we need assets that retain their value in times of structural inflation”he wrote.
His analysis emphasizes the ceiling of 21 million bitcoins which he contrasts with the constant increase in the supply of gold year after year. From now on, the ratio Stock to Flow (S2F) of bitcoin is “much higher than that of gold”.
In fact, around 187,000 tonnes of gold have already come out of the ground. With 3,000 tonnes more each year, gold has a ratio of around 60. It therefore only takes 60 years to double the quantity of gold in circulation.
Conversely, this ratio will increase to 120 in the case of bitcoin from the “halving” next April. It will then officially be twice as difficult to create as gold.
Furthermore, Mr. Timmer perceives bitcoin as a network whose adoption is experiencing a “exponential growth”. A growth ” similar to the S-curves of various technological innovations such as rail, radio or telephones.
“Bitcoin adoption has followed a classic S-curve. S-curves are exponential growth curves that characterize technological innovations. The graph below shows that S-curves date back hundreds of years, from miles of railway to radios and cell phones. »
The first chart suggests that bitcoin will reach $15 trillion by the end of the decade. Or almost 15 times its current market capitalization. This would give us a $645,000 bitcoin.
Don’t miss our article on the Fidelity report which sweeps away the nine recurring criticisms against bitcoin.
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