In his recent Twitter threat, Jurrien Timmer, global macro director at Fidelity, said the number of active Bitcoin addresses continues to grow steadily despite falling prices.
He also compared the major cryptocurrency and the tech giant Apple, thus trying to gauge Bitcoin's prospects.
Timmer names Apple's massive growth over the past three decades as another example of an S-curve.
An S-curve is a mathematical model that is applied to demonstrate growth in a variety of different areas. The model helps illustrate the introduction and adoption of certain technologies such as mobile phones and the Internet.
The executive estimated that Apple's network has seen 53x growth since 1996 based on its sales, while the company's market value has increased 1,699x.
Timmer points to the fact that Apple's price has increased along with the growth in sales and the growth in valuation:
Apple's price has increased 1457 times since 1996, while its price-to-sales ratio has increased 30 times. (See below.) If valuation growth is an exponent of sales growth (according to the Metcalfe's Law), then the price should rise as the exponent of both measures. For Apple, it is.
Bitcoin's valuation has increased by 867x since 2011, while its price has increased by 640,633x. If we apply Metcalfe's law and calculate the square of 867, we get 751,111. This roughly corresponds to the realized price gain of 640,633x.
Timmer concludes that Bitcoin and Apple are following a similar growth path despite the fact that these technologies are different.
In an October interview with CNBC, the Fidelity executive predicted that the price of Bitcoin would hit $100,000 by 2023.
He sees Bitcoin as a "convex version" of gold, which is considered a traditional safe-haven asset.
Yet, despite being bullish on Bitcoin, Timmer is confident that Bitcoin will help the greenback maintain its dominance.