According to Jurrien Timmer, head of global macro at Fidelity, despite the price drop, the number of active Bitcoin addresses continues to rise rapidly. He also compared the largest cryptocurrency to the tech titan Apple. Timmer cites Apple’s meteoric rise over the last three decades as just another instance of an S-curve. An S-curve is a mathematical model used to depict growth in a range of industries. The pattern shows how people start using certain technologies, like smartphones and the internet.
Based on revenues, the executive estimates that Apple’s network has grown 53-fold since 1996, while the company’s market value has grown 1699-fold.
Timmer points out that Apple’s stock price has risen in lockstep with sales and valuation growth:
Since 1996, Apple’s stock price has increased 1457 times, while its price-to-sales ratio has increased 30 times.
He computes the value of Bitcoin using Metcalfe’s law, which states that the value of a network is equal to the square of the number of users:
Since 2011, Bitcoin’s worth has climbed 867 times, while its price has increased 640,633 times. When we apply Metcalfe’s Law to the square of 867, we obtain 751,111. This closely corresponds to the 640,633x realised price gain.
Timmer believes that, despite the fact that both technologies are quite different, Bitcoin and Apple are on a similar path of growth.