Fidelity Investments director of global macro Jurrien Timmer appeared on CNBC today to discuss his bitcoin price prediction models, market outlook, and opinion on the current rally. Timmer shared a bearish prediction for BTC, bullish inclinations towards the dollar as the world’s reserve currency, and a profound misunderstanding of the relationship between Bitcoin and gold.
Timmer said the over 30 percent rally that Bitcoin has experienced this month had not been fueled by momentum traders, indicating that it is being driven by organic spot demand instead and can be extended further. The director sees bitcoin reaching $100,000 by 2023.
“This has not been a momentum-fueled run by short-term speculators, so that gives me some confidence that this actually is a pretty sustainable move and is not a bubble that is about to burst,” Timmer told CNBC. “The trajectory is up and so far there really is no evidence that this is a bunch of momentum chasers bringing this up to $57,000.”
When asked about Bitcoin’s relationship with gold, Timmer said that despite their differences, both are complimentary. The Fidelity director acknowledges the superiority of Bitcoin but fails to realize that it will naturally supersede the inferior store of value that is gold.
“Bitcoin is a more convex version of gold. It has an ever scarcer supply and gold does not have the network dynamics that bitcoin does, so it makes sense that bitcoin would outperform gold,” Timmer said. “Bitcoin and gold are two different players on the same team.”
But perhaps Timmer’s short-sightedness is more clearly demonstrated with his thoughts on the dollar-bitcoin dynamics.
“I really don’t think bitcoin threatens the dollar or the dollar’s reserve status,” he said. “Maybe it actually further ensures that the dollar will maintain its reserve status…and it’s still probably going to be connected to the dollar in some way.”
“Bitcoin’s value proposition is that ultimately it goes from just being a store of value to also being a medium of exchange, and that depends on second layer [developments] that are being built right now,” the Fidelity director added.
Bitcoin second-layer is being developed and is being widely used. In this decade, Bitcoin and Lightning will obsolete gold and help the world realize that the dollar is a shitcoin. It is only natural that many “experts,” blinded by the asymmetric benefits they get from the status quo, will fail to realize that until the very last minute.