Comparing the largest cryptocurrency to tech powerhouse Apple, Jurrien Timmer, director of global macro at Fidelity, recently said on Twitter that despite the price drop, the number of active Bitcoin addresses continues to grow gradually,
Apple’s tremendous expansion over the last three decades is another example of an S-curve, according to Timmer.
A mathematical model known as an S-curve is used to depict growth in a variety of industries. The pattern depicts the introduction and adoption of many technologies, such as cellphones and the internet.
Based on revenues, the executive estimates that Apple’s network has grown 53-fold since 1996, while the company’s market worth has increased 1699-fold.
Timmer points out that Apple’s stock price has risen in lockstep with sales and valuation growth:
“Apple’s price has grown 1457x since 1996, while its price-to-sales ratio has grown 30 times. (See below.) If the growth in valuation is an exponent of the growth in sales (per Metcalfe’s Law), then price should increase as an exponent of both metrics. For Apple, it has.”
According to the executive, Apple’s network has grown 53 times in sales since 1996, while the company’s market worth has increased 1699 times.
Apple’s price has risen in lockstep with sales and valuation increases, according to Timmer:
“Bitcoin’s valuation has increased 867x since 2011, while its price has increased 640,633x. If we apply Metcalfe’s Law and calculate the square of 867, we get 751,111. This is roughly in line with the 640,633x realized price gain.”
Despite the fact that both technologies are vastly different, Timmer finds that Bitcoin and Apple are on similar growth paths.
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