{"id":147968,"date":"2021-12-21T21:47:02","date_gmt":"2021-12-21T21:47:02","guid":{"rendered":"https:\/\/precoinnews.com\/?p=147968"},"modified":"2021-12-21T21:47:02","modified_gmt":"2021-12-21T21:47:02","slug":"fidelitys-director-of-global-macro-explains-why-ethereum-eth-is-undervalued","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/bitcoin\/fidelitys-director-of-global-macro-explains-why-ethereum-eth-is-undervalued\/","title":{"rendered":"Fidelity\u2019s Director of Global Macro Explains Why Ethereum ($ETH) Is Undervalued"},"content":{"rendered":"<p>Recently,\u00a0Jurrien Timmer, Director of Global Macro at Fidelity Investments, compared the network growth of Bitcoin and Ethereum.<\/p>\n<p>Alth both networks are \u201cgrowing steadily\u201d, Timmer says that Ethereum is growing faster. He also points out that $ETH\u2019s valuation (as defined by market cap \/ network ratio) is lower than that of $BTC because investors seem to be seduced by Bitcoin\u2019s \u201csuperior scarcity dynamics.\u201d<\/p>\n<p>On March 1,\u00a0Jurrien Timmer, Director of Global Macro at Fidelity Investments, published a 12-page research paper on Bitcoin (title: \u201cUnderstanding Bitcoin: Does bitcoin belong in asset allocation considerations?\u201d).<\/p>\n<p>Timmer started by saying that he intended his\u00a0paper\u00a0to serve as \u201ca brief plain-English primer, but also to assess, in a meaningful way, the value proposition of bitcoin as it relates to asset allocation.\u201d<\/p>\n<p>After his study of Bitcoin, some of the conclusions he came to are as follows:<\/p>\n<ul>\n<li>\u201c<em>\u2026 bitcoin has gone mainstream, already considered a legitimate asset class by more and more investors.<\/em>\u201c<\/li>\n<li>\u201c<em>\u2026 bitcoin has both a compelling supply dynamic (S2F) and demand dynamic (Metcalfe\u2019s Law).<\/em>\u201c<\/li>\n<li>\u201c\u2026\u00a0<em>bitcoin is gaining credibility, and as a digital analog of gold but with greater convexity\u2026 bitcoin will, over time, take more market share from gold.<\/em>\u201c<\/li>\n<\/ul>\n<p>Timmer says that \u201cif gold is now competitive with bonds, and bond yields are near zero (or negative), perhaps it makes sense to \u201cto replace some of a portfolio\u2019s nominal bond exposure with gold and assets that behave like gold.\u201d<\/p>\n<p>He finished by saying:<\/p>\n<p><em>\u201cIf bitcoin is a legitimate store of value, is scarcer than gold, and comes complete with a potentially exponential demand dynamic, then is it now worth considering for inclusion in a portfolio (at some prudent level and at least alongside other alternatives, such as real estate, commodities, and certain index-linked securities)?<\/em><\/p>\n<p>\u201c<em>Despite the many risks discussed\u2014including such factors as volatility, competitors, and policy intervention for some the answer may well be \u2018yes,\u2019 at least insofar as that \u2018yes\u2019 applies only to components on the 40 side of 60\/40. For those investors, the question of bitcoin may no longer be \u2018whether\u2019 but \u2018how much?\u2019.<\/em>\u201c<\/p>\n<h2>Disclaimer<\/h2>\n<p><em>The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.<\/em><\/p>\n<h2>Image Credit<\/h2>\n<p><em>Featured Image\u00a0by \u201cvjkombajn\u201d via\u00a0Pixabay<\/em><\/p>\n<p>Source: <a href=\"https:\/\/www.cryptoglobe.com\/latest\/2021\/12\/fidelitys-director-of-global-macro-explains-why-ethereum-eth-is-undervalued\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently,\u00a0Jurrien Timmer, Director of Global Macro at<\/p>\n","protected":false},"author":3,"featured_media":147967,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Fidelity\u2019s Director of Global Macro Explains Why Ethereum ($ETH) Is Undervalued - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/bitcoin\/fidelitys-director-of-global-macro-explains-why-ethereum-eth-is-undervalued\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fidelity\u2019s Director of Global Macro Explains Why Ethereum ($ETH) Is Undervalued - 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