Fidelity Macro Expert Says Bitcoin (BTC) and Ethereum (ETH) Are Now “Impermeable” Markets – Here’s What That Means
Fidelity’s lead macro strategist Jurrien Timmer says Bitcoin (BTC) and Ethereum (ETH) have reached a point where they are likely impervious to competition.
In an interview with Raoul Pal at Real Vision, Timmer compares Bitcoin and Ethereum to the American tech giant Apple and its massive presence and dominance over the industry.
“According to Metcalfe’s law, the larger the network becomes, the more exponential the valuation of the network becomes. And I’ve used the example of Apple computers, where you can see that if you look at their annual revenue, the more iPhones and all that they sell, the valuation goes up exponentially until it gets to the point — and then, when it comes to the point where the network is so powerful that it has such a big moat around it that even if I invent a far better iPhone tomorrow, I’m never going to be able to penetrate that network, because it’s too powerful.”
The macro expert says that while other crypto projects will continue to exist and compete with the top two digital assets by market capitalization, Bitcoin and Ethereum have already established themselves as top dogs.
“And I think Ethereum and Bitcoin have reached those thresholds. That doesn’t mean there won’t be other coins and other networks out there. But I think they’ve met the test of being big enough to be believed and taken seriously, right right? A couple of years ago, a lot of investors said, ‘Well, this could be regulated out of existence pretty quickly.’ That ship has sailed, I think.”
At the time of writing, Bitcoin is trading at $23,749, while Ethereum is valued at $1,694.
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Featured image: Shutterstock/Tithi Luadthong
