Fidelity Strategist: Bitcoin and Ethereum in a League of their Own
Bitcoin and Ethereum have become so successful that there is no competition for them, this according to Fidelity’s lead macro strategist Jurrien Timmer
Speaking with fellow macro guru, Raoul Pal, on his Real Vision channel, Timmer said that it will be impossible to overtake Bitcoin and Ethereum and compares the networks to how Apple has established itself, dominating the industry.
“As per Metcalfe’s law, the bigger the network gets, the more exponentially the valuation of that network becomes. And I use the example of Apple computer, where you can see, if you look at their annual revenues, the more iPhones and all that stuff that they sell, the valuation goes up exponentially to that until it gets to the point – and then, when it gets to the point where the network is so powerful that it has such a large moat around it that even if I’d invent a better iPhone tomorrow, I will never be able to penetrate that network, because it’s just too powerful.
Although there will always be other crypto assets and networks trying to join and outperform Bitcoin and Ethereum, “that ship has sailed,” Timmer said, adding that the two flagship cryptocurrencies are in a league of their own:
“I think that 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 have satisfied the test to become big enough to be believed and taken seriously, right? A couple years ago, a lot of investors said, ‘Well, this can get regulated out of existence pretty quickly.’
At time of writing the two top performers are trading at $23,399 and $1,694 respectively, according to CoinMarketCap.
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Source: igaming
