Jurrien Timmer, director of global macro at Fidelity Investments, has stated that it is “possible” for Bitcoin to overtake gold. However, he does not expect this to occur anytime soon.
Timmer believes that it could possibly happen a decade or two from now if Bitcoin follows either the S-curve trajectory of internet adoption or the power law curve.
The Fidelity exec assumes that the price of the lustrous metal will keep growing at the same historical compound annual growth rate (CAGR) of 8%. This has been the case since the 1970s. CAGR is helpful when it comes to smoothing out the returns of a particular asset over a certain period of time.
Bitcoin’s quieter older sibling
That said, Timmer believes that gold will be able to exceed its historical CAGR of 8% if its digital version ends up growing at the rate suggested by either of the two aforementioned models. In such a case, gold will still be ahead of Bitcoin.
“So, my guess is that gold will always be Bitcoin’s quieter older sibling,” Timmer added.
As reported by U.Today, Galaxy Digital CEO Mike Novogratz recently predicted that Bitcoin could surpass gold by the end of the decade.
The two assets have market capitalizations of $20.9 trillion and $1.7 trillion, respectively.
Gold’s outperformance
As reported by U.Today, Peter Schiff, the most prominent goldbug, has gloated over Bitcoin’s underperformance, predicting that the cryptocurrency might collapse to $10,000 and lose 95% of its value against Bitcoin.
Bitcoin has plunged by more than 33% against the yellow metal after peaking in December.
Gold is casually hitting new all-time highs amid uncertainty fueled by global trade tensions.
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