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Based on the fractal, Bitcoin is in an early stage of a protracted rally that could allow BTC to experience long-term exponential growth.
Bitcoin could be on the same trajectory as gold
There are two main reasons why Bitcoin could follow the macro trend that gold saw in the 1970s. First, BTC has a fixed offer that cannot expand, which makes it an attractive hedge against inflation. Secondly, BTC has the same qualities as a gold safe haven.
In August 2020, the Winklevoss twins, billionaire Bitcoin investors behind major US cryptocurrency exchange Gemini, presented a bullish argument as to why the price of BTC could rise to $ 500,000.
In the thesis, they identified the qualities of Bitcoin that make it a safe haven asset. Winklevoss specifically pointed out that BTC is not subject to potential supply shocks, unlike gold. They wrote:
“Supply. Bitcoin is not just a rare commodity, it is the only known commodity in the universe that has a deterministic and fixed supply. As a result, bitcoin is not subject to any of the potential positive supply shocks that gold ( or any other commodity) could face in the future “.
Due to this characteristic of Bitcoin, investors continually argue that BTC is a better safe haven than gold. This comparison between BTC and gold is what leads many to believe that Bitcoin is on a trajectory for long-term exponential growth.
Su Zhu, CEO of Three Arrows Capital, one of the largest funds in the cryptocurrency industry, She said
“Any continued decline in $ BTC would be extremely bullish as it would reveal that we are following the gold fractal of the 1970s, as shown below by Paul Tudor Jones – the legendary macro investor who successfully used fractals to predict the super cycle. stock market of the 1980s. “
There is also a huge gap between Bitcoin’s valuation and gold. Currently, the market capitalization of gold is estimated at $ 9 trillion. By comparison, Bitcoin’s market cap is less than 4% of gold’s valuation, which leaves a gap between the two assets.
Investors say Bitcoin’s origins give it strength
Tyler Winklevoss also noted that the Bitcoin creator’s anonymity is a major plus for the digital ass.
He said Bitcoin has evolved into a $ 330 billion asset and yet Satoshi Nakamoto, the creator behind it, remains anonymous.
This legitimizes and further strengthens the perception of Bitcoin as a true store of value. He She said:
“The fact that we still don’t know who Satoshi is # Bitcoin’s market cap is $ 330 billion, is a testament to the fact that Bitcoin speaks for itself.”
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