Jurrien Timmer, senior macro strategist at Fidelity, says 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, Mr. Timmer compares bitcoin and ethereum to American tech giant Apple, its massive presence and dominance in its industry.
“According to Metcalfe’s law, the larger the network, the more the valuation of this network becomes exponential. And I used the example of Apple computers, where you can see, if you look at their annual revenue, the more iPhones they sell and all of those things, the valuation increases exponentially until we get to to the point – and then when you get to the point where the network is so powerful that it has such a big moat around it that even if I invent a much better iPhone tomorrow, I’ll never be able to break into that network, because it is too powerful. »
According to the macroeconomics expert, while other cryptocurrency projects will continue to exist and compete with the top two digital assets in terms of market capitalization, Bitcoin and Ethereum have already established themselves as behemoths.
“And I think Ethereum and Bitcoin have reached those thresholds. This does not mean that there will not be other rooms and other networks. But I think they passed the test to become important enough to be believed and taken seriously, right? A few years ago, a lot of investors said, “It can be regulated and go away pretty quickly.” I think the boat is gone. »
At the time of writing, bitcoin is trading at $23,749, while Ethereum is valued at $1,694.
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