Fidelity Predicts $1 Billion Bitcoin

Investing giant goes all in on crypto space

$1,000,000,000. A lot of zeroes. In 2021, a billion dollars seems like a lot of money. Even in 2038, it will be a lot of money. Jurrien Timmer, Director of Global Macro at Fidelity Investments, believes that one Bitcoin could be worth $1 billion by the year 2038.

Timmer also believes that the orange coin could hit $1 million before this decade is over. That’s only eight years from now, and would represent a 20x multiple of Bitcoin’s current market price of around $48,000. I know. Anyone can make predictions like that. But Timmer lays out his case using his own valuation model and another well known model, the Stock to Flow model.

Timmer’s demand model is based upon Metcalfe’s Law. Metcalfe holds that as the number of users of a network grows linearly, the value of the network grows exponentially. Thus, if the number of users doubled, its value would grow at four times, or the square of two. Timmer’s demand model grows steadily to about $1 million by the year 2030.

By contrast, the Stock to Flow model, created by the pseudonymous analyst that goes simply by Plan B, is…