$BTC: Fidelity Exec Says Bitcoin “Follows the Same Path” as Apple Stock (AAPL)

In a recent interview, Jurrien Timmerdirector of Global Macro at Fidelity Investments, compared Bitcoin’s growth trajectory to that of Apple stock.

In March 2021, Timmer published a 12-page Bitcoin research paper (title: “Understanding Bitcoin: Does Bitcoin Belong in Asset Allocation Considerations?”).

Timmer began by saying that he intended to paper to serve as “a brief introduction in plain English, but also to assess, in a meaningful way, bitcoin’s value proposition as it relates to asset allocation.”

After his study of Bitcoin, here are some of the conclusions he came to:

  • … bitcoin has gone mainstream, already seen as a legitimate asset class by more and more investors.
  • … bitcoin has both compelling supply dynamics (S2F) and demand dynamics (Metcalfe’s Law).
  • “… bitcoin is gaining credibility, and as a digital analogue of gold but with greater convexity…bitcoin will, over time, take more market share from gold.

Timmer said that “if gold is now competitive against bonds and bond yields are close to zero (or negative), it may make sense to “replace some of the nominal bond exposure with a portfolio of gold and assets that behave like gold”.

He ended by saying:

If bitcoin is a legitimate store of value, is rarer than gold, and comes with potentially exponential demand dynamics, is it now worth considering for inclusion in a portfolio (at some point? cautious level and at least alongside other alternatives, such as real estate, commodities and some indexed securities)?

Despite the many risks discussed, including factors such as volatility, competitors and political intervention for some, the answer may well be ‘yes’, at least to the extent that ‘yes’ only applies to to 60/40 side 40 components. For these investors, the bitcoin question may no longer be “if” but “how much?”.

Well, on Tuesday February 8, Timmer gave an interview to Preston Pysh for episode BTC064 from the Bitcoin Fundamentals Podcast, which is the flagship podcast of the Investor Podcast Network.

According to a report by The daily newspaper HodlHere are some highlights of Timmer’s comments on Bitcoin:

  • I compared the whole network effect for Bitcoin to the network effect of Apple computers. So, as Apple increases its revenue, its stock price increases exponentially from that. It’s not going online… Bitcoin follows the same path. And so I think there’s a very robust logic why Bitcoin should see higher values ​​as the demand curve shifts.
  • Maybe other digital assets will do better [relative to Bitcoin] because they are more scalable but at the same time maybe less decentralized. And that’s why I would say that for me Bitcoin is an asset class like a store of value, like gold. And the rest of the digital asset space is more like a risk asset.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto-assets involves the risk of financial loss.

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