As Bitcoin goes mainstream, joining the ranks of its supporters is Jurrien Timmer, the director of Global Macro at Fidelity, a large financial services company that controls more than $3.3 trillion. And Bitcoin has a “unique advantage over gold,” he said.
Timmer last month published a note in which he suggested that it’s a good idea for portfolio managers to consider Bitcoin as a replacement for gold or bonds.
“Some investors may wish to consider bitcoin, alongside other alternatives, as one component of the bond side of a 60/40 stock/bond portfolio,” he wrote.
Timmer recited the features that give Bitcoin its value: its scarcity, its declining supply-growth curve, its reputation, and its adherence to Metcalfe’s Law—which holds that a network’s value increases faster as the number of users rises.
