Urien Timer, an economist at Fidelity Investments, said that in order to assess the long-term performance of bitcoin, one must look at things other than price fluctuations. He believes that the growth of the network and the adoption of bitcoins around the world will largely guarantee the future of this digital currency.
According to Daily Hoodle, Jurin Timer, director of macroeconomics at Fidelity Investments, is optimistic about rising bitcoin prices in the long run. He recently told his 99,100 followers on Twitter that fluctuations in bitcoin in the range of $ 30,000 to $ 65,000 do not matter much.
He wrote about it on Twitter:
Bitcoin has been in full swing for a year, trading between $ 30,000 and $ 65,000. Many people may talk about going up and down, but most of these arguments are useless.
According to Timer, retailers should focus on network growth instead of bitcoin price charts. He specifically focused on the bitcoin demand curve, which shows the number of wallets in stock.
The fidelity expert said:
The most important thing is that the demand curve for bitcoins moves up and to the right (forward). In the image below you can see that the graph of the number of bitcoin inventory portfolios is still a scourge and follows a simple power regression curve (orange dotted on the graph).
Given the growth and value of the bitcoin network, Timer said the trend in the price of bitcoin has so far followed Metcalfe’s law. This rule was used for the first time in the computer and telecommunications industry and shows that the value of the network is equal to the square of the number of users.
The value of the bitcoin network has increased almost 867 times since 2011, and its price has increased 640,633 times. If we use Metcalfe’s law and get a square of 867, the result will be 751,111, which is almost equivalent to a 640,633-fold increase in the price of bitcoin.
Fidelity’s chief executive says the bitcoin acceptance chart is very similar to the mobile and internet subscription acceptance chart. Therefore, he believes that the price of bitcoin will grow steadily in the coming years.
So what happens to the bitcoin demand curve? The answer to this question is that the bitcoin demand curve may be similar to the following curves. These two curves are curves of receiving mobile and internet subscriptions, which have different inclinations, but their long-term growth paths are generally similar.
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