Many experts in the industry have stated that Bitcoin (BTC), will one day reach $1,000,000. Binance’s Changpeng Zhao CZ, Ark Invest CEO Cathie Wood or Strategy chief Michael Saylor all predict that BTC is going to reach the $7-digit number. Bitwise Chief Investment Officer (CIO), Matt Hougan, is the latest join the bandwagon, according to a recent publication.
Why does Bitwise CIO think Bitcoin will hit $1 Million?
Hougan calls Bitcoin (BTC), which he compares to gold in the article, “a new form of money”. “an emerging store-of-value asset.” Hougan highlights that Bitcoin allows you to store wealth outside of the fiat system. Hougan says that Bitcoin “is more volatile and less established than gold, but it is increasingly competing for the same market.“
Hougan points out that the market for store of value is worth about $38 trillion. Godl is the largest contributor to this valuation, with approximately $36 trillion. Bitcoin (BTC) represents less than 4% with an estimated valuation of $1.4 billion. Bitwise CIO reminded readers that in 2004, the US launched the first ETF for gold, which was valued at $2.5 trillion. In 2024 the US will have its first Bitcoin ETFs. “proven to be the fastest-growing ETFs of all time.” BTC prices could surge massively in future, if the historic pattern is followed.
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Hougan highlights that things aren’t set in stone. Hougan emphasizes that “the global store-of-value market will not continue to grow as it has for the past 20 years.” The store of value market has been boosted by significant challenges in the last two decades. Gold’s rise was largely influenced by the global financial crisis and quantitative easing. Bitcoin’s growth (BTC), therefore, could be slower than the gold price’s in future as these challenges are not likely to occur.
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Source: watcher.guru
