The chief investment officer of crypto asset management firm Bitwise says Bitcoin (BTC) will be hit by an unexpected crisis.
In a new interview on the Insightful Investor YouTube channel, Bitwise CIO Matt Hougan say that the crypto king is now stable enough to be considered a store of value, just like gold.
According to Hougan, assets that store value tend to follow a pattern: one in which their volatility decreases over time as their price increases.
“I would argue that [Bitcoin] has gotten to the point where it is sufficiently stable to be used as a store of value. If you look since Covid, the US dollar has lost 25% of its total value.
Bitcoin is up about 800%. It’s a pretty good store of value. People forget that even gold itself is quite volatile. Bitcoin is slightly more volatile than gold – which means you have more upside…
Investing in Bitcoin will be quite boring [like gold] but it must follow this journey. You can’t create a store of value that comes out of nowhere and is immediately stable; that’s just logically impossible. It has to follow the journey it’s on, which is decreasing volatility and increasing prices, and I think that will continue into the future.”
Hougan further notes that since BTC’s price is in real time, investors feel the volatile nature of the asset more than other investments, including times when unexpected crises arise.
“I have a lot of confidence in where Bitcoin is ultimately going, but I don’t actually know how quickly it will get there. What happens in the US elections will affect how quickly Bitcoin gets there.
What people do in terms of debt and deficits will affect how quickly they get there. Unexpected crises will have an impact [it[, so as you have these developments happen or not happen, it influences the price of Bitcoin.
If this were an early-stage technology company, like a Series A Technology company, but being priced in real-time, we would see the same kind of volatility. It’s just an early investment. The difference is, it prices in real time so you experience that volatility.”
Bitcoin is trading for $59,084 at time of writing. a 4.5% decrease during the last 24 hours.
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