Bitcoin and Apple might be completely different animals, but they follow a similar path, according to Jurrien Timmer, director of global macro at investment giant Fidelity
In his recent Twitter threat, Jurrien Timmer, global macro director at Fidelity, said the number of active Bitcoin addresses continues to grow steadily despite falling prices, comparing the biggest cryptocurrency to tech giant Apple.
Timmer names Apple’s massive growth over the past three decades as yet another example of an S-curve.
An S-curve is a mathematical model that is applied to demonstrate growth in a variety of different areas. The model helps illustrate the introduction and adoption of certain technologies such as mobile phones and the Internet.
The exec has estimated that Apple’s network has experienced 53-fold growth since 1996 based on its sales while the company’s market value has seen a 1699-fold increase.
Timmer points to the fact that Apple’s price has increased along with the growth in sales and the growth in valuation:
Apple’s price has grown 1457x since 1996, while its price-to-sales ratio has grown 30 times. (See below.) If the growth in valuation is an exponent of the growth in sales (per Metcalfe’s Law), then price should increase as an exponent of both metrics. For Apple, it has.
It then calculates Bitcoin’s valuation by applying Metcalfe’s Law, which says that the valuation of a certain network is proportional to the square of the number of users:
Timmer concludes that Bitcoin and Apple follow a similar path of growth despite the fact that these technologies.
$100,000 is still on the cards
In an October interview with CNBC, the Fidelity executive predicted that the price of Bitcoin would hit $100,000 by 2023.
He sees Bitcoin as a “convex version” of gold, which is considered to be a traditional safe-haven asset.
Yet, despite being bullish on Bitcoin, Timmer is confident that Bitcoin will not threaten cryptocurrency adoption, predicting that the biggest cryptocurrency will in fact help the greenback maintain its dominance.
