Through his Twitter account, Timmer stated that the focus should be on Bitcoin’s network and not the price, while stressing that the recent criticism was ‘mostly noise.’ Specifically, the Director singled out Bitcoin’s demand curve that has continued to rise after previous comparisons to mobile phone subscriptions and internet adoption under the S-curve.
Bitcoin and AAPL dictated by their networks
However, according to Timmer, Bitcoin’s price targets now lie in a similar regression curve to Apple’s growth from around 1990. While comparing the assets’ growth trajectory, Timmer stressed that their network activities dictate both. When analyzing Apple’s growth, Timmer leveraged Metcalfe’s Law, which states that the value of a telecommunications network is square of the number of connected users in the system. In this line, Apple’s price has grown 1,457 times since 1996, with the price-to-sales ratio surging by a factor of 30 over the same period of time. In comparison to Bitcoin, Timmer leveraged the cryptocurrency’s price and price-to-network ratio. Notably, Bitcoin’s valuation has grown over 800 times since 2011, with the value rising over 640 times. Based on Timmer’s analysis, Bitcoin is likely to see long-term growth when compared to mobile subscriptions.
Bitcoin outperforms tech stocks
Although Bitcoin and equities belong to different asset classes, recent price movements have shown a high correlation. Notably, the correlation is viewed as an indicator for maturity. Finally, Bitcoin has performed better than most tech stocks following the recent growth in the crypto sector. As per Finbold’s previous report, as of February 13, Bitcoin’s 30 day ROI had outperformed the top six tech stocks by an average return of 12.24%.
