Based on the fractal, Bitcoin is in an early on phase of a prolonged rally that could allow BTC to experience exponential growth in the longer term.

Bitcoin versus gold price fractal. Source: Bloomberg

Bitcoin may exist on the same trajectory as gold

There are two primary reasons why Bitcoin could follow the macro trend gold saw from the 1970s. First, BTC has a fixed supply that cannot expand, which makes it an attractive hedge against inflation. Second, BTC has the aforementioned qualities of a condom-oasis asset that gold has.

In August 2020, the Winklevoss twins, billionaire Bitcoin investors behind the major U.Due south. cryptocurrency exchange Gemini, laid out a bull case for why BTC toll could rally to $500,000.

In the thesis, they identified the qualities of Bitcoin that make it a viable safe-haven asset. The Winklevoss specifically emphasized that BTC is not subject to any potential supply shocks, dissimilar gilded. They wrote:

"Supply. Bitcoin is not simply a scarce commodity, it'southward the simply known commodity in the universe that has a deterministic and fixed supply. Every bit a result, bitcoin is not bailiwick to any of the potential positive supply shocks that gold (or any commodity for that affair) may confront in the future."

Due to this characteristic of Bitcoin, investors continuously make the argument that BTC makes a ameliorate safety-haven asset than gold. This comparison between BTC and gold is what leads many to believe that Bitcoin is on a trajectory for long-term exponential growth.

Su Zhu, the CEO of Iii Arrows Capital, 1 of the largest funds in the cryptocurrency space, said

"Any continued dump in $BTC would exist extremely bullish as it would reveal we are following the gilt fractal from the 1970s, equally per below past Paul Tudor Jones--the legendary macro investor who successfully used fractals to predict the 1980s stock market place supercycle."

At that place is likewise a massive gap between the valuation of Bitcoin and gold. Currently, gilt's market cap is estimated to be $ix trillion. In comparing, Bitcoin's market cap is less than four% of gold's valuation, which leaves a gap between the two assets.

Investors say Bitcoin's origins give it strength

Tyler Winklevoss also noted that the anonymity of Bitcoin'southward creator is a major positive factor for the digital ass.

He said that Bitcoin has evolved into a $330 billion asset and even so, Satoshi Nakamoto, the creator behind it, remains bearding.

This merely legitimizes and farther strengthens the perception of Bitcoin as a proper store of value. He said:

"That fact that we don't know who Satoshi is yet #Bitcoin'southward market cap is $330 billion, is a testament to the fact that Bitcoin speaks for itself."