A macro analyst from Fidelity believes that in order to strengthen the argument that Bitcoin (BTC) and gold are reliable stores of value that protect against inflation caused by the government, there must be a consistent increase in the money supply.
Jurrien Timmer, the global macro director at Fidelity, shared on X that continuous growth in the money supply typically leads to inflation, supporting the idea that gold and BTC can serve as safeguards against weakening currency.
Timmer stated, “In order for the store of value argument to gain traction, we need to see a sustained rise in monetary aggregates above normal levels. Currently, we have not witnessed this, as the significant increase in real M2 during the pandemic quickly reversed due to the Federal Reserve’s restrictive measures. This suggests that gold and Bitcoin are speculative investments based on potential future events rather than current realities.”
M2 is a measure of the money supply that includes cash, checking accounts, and other easily convertible deposits.
As of the time of writing, Bitcoin is trading at $68,435, showing a decrease of nearly 4% over the past week. Despite this, it remains the top-ranked cryptocurrency by market cap.
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