Fidelity’s lead macro strategist Jurrien Timmer says that Bitcoin (BTC) and Ethereum (ETH) have reached a point where they are likely impervious to competition.
In an interview with Raoul Pal on Real Vision, Timmer compares Bitcoin and Ethereum to US tech giant Apple and its massive presence and dominance over its industry.
“Per Metcalfe’s law, the bigger the network gets, the more exponentially the valuation of that network becomes. And I’ve used 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 invent a far better iPhone tomorrow, I’m never going to be able to penetrate that network, because it’s too powerful.”
The macro expert says that while other crypto projects will continue to exist and compete with the top two digital assets by market cap, Bitcoin and Ethereum have already established themselves as top dogs.
“And I think 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.’ That ship has sailed, I think.”
At time of writing, Bitcoin is trading at $23,749, while Ethereum is valued at $1,694.
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