Could Bitcoin Follow Gold’s 1970s Parabolic Rally?
Jurien Timmer the global macro director at Fidelity compares Bitcoin’s current status to gold in the 1970’s
Timmer tells his 61,400 Twitter followers that Bitcoin is an “aspiring asset class,” full of potential much like gold was 50 years ago. Timmer explains that during the 70s, the yellow metal went through a turbulent phase.
“Even though it was a known commodity, gold was extremely volatile on its way to a 20x return and suffered large drawdowns quite regularly.”
Looking at Bitcoin, Timmer says the leading cryptocurrency has more upside than gold had in the 1970s due to BTC’s provable scarcity and network effects. However, the Fidelity global macro strategist highlights that Bitcoin’s upside potential comes with larger drawdowns.