Fidelity’s Jurrien Timmer compared Bitcoin to Apple. According to him, these two follow a similar growth path, although they are different from each other.
Asset manager Fidelity’s Global Macro Director Jurrien Timmer shared a flood on his Twitter account comparing Apple and Bitcoin. While Timmer said that despite the decrease in price, active Bitcoin addresses continue to increase steadily; He described Apple’s tremendous growth over the past three decades as another example of the S-curve. The S-curve, a mathematical model applied to show growth in a variety of different fields, sheds light on the adoption of certain technologies, such as mobile phones and the internet.
Estimating that Apple has grown 53 times since 1996 based on sales and the company’s market value increased 1699 times, Timmer says:
“Apple’s price is 1996′ Since then, the price-sales ratio has increased 1457 times and the price-to-sales ratio has increased 30 times. If the growth in valuation is an exponent of the increase in sales (under Metcalfe’s Law), then the price must rise as a power of both metrics. For Apple, yes.”
Then, applying Metcalfe’s law to Bitcoin, he calculates its value:
“The value of Bitcoin has increased 867 times since 2011, while its price has increased 640,633 times. If we apply Metcalfe’s Law and calculate 867 squared, we get 751.111. This is in line with the realized price gain of roughly 640,633x.”
In summary, Timmer concludes that although these technologies are quite different from each other, Bitcoin and Apple follow a similar growth path.
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