Director of Fidelity Investments on Bitcoin: “I consider it exponential gold”

Financial Experts Highlight Bitcoin's Potential as 'Exponential Gold'
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Bitcoin’s (BTC) role as an ever-evolving financial asset continues to be the subject of intense debate in the investment world.

In a recent news story, Jurrien Timmer, Director of Global Macro at Fidelity Investments, has shared his perspectives on this cryptocurrency and its relationship with gold, while Stanley Druckenmiller, a prominent investor, has expressed his view on the financial market and the growing Bitcoin acceptance among younger investors.

Timmer, in his comments, has highlighted the parallels between Bitcoin’s recent swings and the boom and bust cycles that the cryptocurrency has experienced throughout its history.

Describing Bitcoin as a “commodity currency” with aspirations of becoming a recognized store of value, Timmer compares it to gold, dubbing it: “exponential gold.”

It highlights that while gold has historically been a form of money and a store of value, its usefulness as a medium of exchange is limited.


Timmer provides historical context, reminding that gold tends to excel in economic environments characterized by high inflation, negative real interest rates, and excessive money supply growth.

It uses the 1970s and 2000s as notable examples of periods in which gold gained greater market share relative to global GDP.

Bitcoin as 'Exponential Gold': The Vision of Fidelity and Stanley Druckenmiller

Timmer’s optimism lies in the possibility of Bitcoin playing a similar role to gold under similar economic conditions. He promises to expand the discussion on this topic in a later thread, suggesting that this narrative will continue to be relevant in the coming months.

For his part, Stanley Druckenmiller shares his concerns about the United States economy and suggests that the stock market could be affected starting in 2024.

He also acknowledges the growing acceptance of Bitcoin as a store of value, especially among younger investors, regretting not having invested in it sooner.

Although he owns gold, he highlights the convenience and ease of use of Bitcoin in transactions, making it a more attractive option for the younger generation of investors.


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