Jurrien Timmer has compared the potential of investing in Bitcoin to Gold, indicating the changing tone and scenario in the Fidelity Investments about cryptocurrencies. In a research note written to the investors, Timmer compared Bitcoin as a tool that can provide a hedge against inflation while comparing its value to the Digital Gold. Timmer also said that according to his assessment, Bitcoin had already gone mainstream.
It is important to note that Timmer is not part of the pro-crypto group and his analysis proves (without any doubt) that cryptocurrencies are increasingly becoming popular among investors. Given that Bitcoin’s supply is limited, the demand for the coin continues to expand exponentially. This means it will become more valuable in the times to come as this limited supply doesn’t apply to conventional money or gold.
The economic environment‘s ongoing circumstances are also in favor of Bitcoin, especially with central banks printing currency notes incessantly and interest rates approaching close to zero or even negative. All these factors are conducive to the growth of Bitcoin value and help it present itself as a viable alternative to traditional currencies. Timmer cautioned that the volatility factor associated with Bitcoin might cause some difficulty, but a dedicated group of investors can benefit from this environment of uncertainty. The investors investing in Bitcoin for the long term are likely to benefit from it compared to those struggling with the issue of whether the value will increase or not. Those who are still confused about the fluctuations can also refer to Bitcoin Prediction, which might help them decide on long-term investment. Therefore, investors who are sure about the long-term capabilities of Bitcoin will find value and invest in cryptocurrency for long-term investment. This will provide fresh impetus to the growth of the coin in the coming times.
Timmer also predicted that in the future, Bitcoin would find wider acceptance, and its share among the investors would also increase. This enhanced popularity will come at the expense of the market share of gold which continues to remain one of the popular choices of investors worldwide.