Bitcoin is gaining a lot of attention in the market. In these turbulent times where war narratives have changed the geopolitical scene, this token has proven to be a reliable safe haven. Gold’s fall was also a result of the war, at a point when gold should have been gaining market dominance. Are we, in other words witnessing an era when Bitcoin slowly takes over gold? Matt Hougan, Bitwise’s CEO has some thoughts on the matter.
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Bitcoin Vs. gold: Which is the better safe haven?
The world witnessed an unusual narrative since the beginning of the US-Iran War. BTC was able to outperform gold. Iranians sought refuge in BTC while gold spiraled down, reaching new lows. Matt Hougan is the CIO at Bitwise. He claims that Bitcoin’s addressable market has now surpassed gold in terms of numbers, and it exceeds $34T. BTC’s value is also up by 12%. Gold, at 10%, leads the race for safe-haven assets.
Hougan predicted that BTC could hit $1m by 2035.
“For Bitcoin, we have three big factors. One, we have soaring debt and deficits in the U.S. and in other countries around the world. So we have rising concerns about the risks of fiat debasement. At the same time, we have regulation that has gone from aggressively anti-crypto to aggressively pro-crypto. And we have institutional investors who now have tools like ETFs that allow them to access this asset class. When you put it all together, you think there’s going to be a lot of institutional flow into Bitcoin, but how much? The way we got to that $1.3 million price target.”
Hougan’s philosophy behind his $1.5M BTC prediction
Matt Hougan shared the reasoning behind his prediction. He explained how Bitcoin may become a major store of value that competes with gold in the near future. It can be tied to forex or real estate to create offshore wealth, which gives it even more power.
“We think it’s going after the store-value market that’s dominated by gold. And we think it can be used for offshore wealth, which is often tied to real estate or forex reserves right now. We think it can be used in certain emerging market economies. And we estimated how much of those markets will it have by 2035 and how big those markets will be? The $1.3 million prediction guesses that Bitcoin will take 25% of the store of value market, which includes Bitcoin and gold, by 2035. From my perspective, that’s actually a very conservative forecast. I probably think we could be bigger than gold by that point.”
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Source: watcher.guru
