Bitwise CIO: Dollar Doesn't Need to Collapse for BTC to Reach $200,000

On October 30, Bitwise Chief Investment Officer Matt Hougan said that even without a collapse of the U.S. dollar, Bitcoin's price could reach six figures due to increased investment in “store of value” assets and continued depreciation of fiat currencies, according to Cointelegraph. In an October 29th post, Hougan responded to a question from a financial advisor who asked if Bitcoin could reach a value of $200,000 without the collapse of the U.S. dollar. Hougan said that Bitcoin will succeed in establishing itself as “the new store of value asset” and that governments will continue to “abuse fiat currencies”. Hougan said that Bitcoin will succeed in establishing itself as “the new store of value” and that governments will continue to “misuse fiat currencies,” which will naturally lead to an increase in demand for hard assets such as Bitcoin.

He noted that the total market capitalization of bitcoin is currently about 7-8 per cent of the market capitalization of gold, and that bitcoin could “mature” to half the total value of gold, making each bitcoin worth about $400,000. In addition, as governments abuse their control over the supply of fiat currency by printing money, more investors will be inclined to hold assets that are a store of value. If Bitcoin maintains only its 7 percent share relative to gold, and demand for Bitcoin alone triples, each Bitcoin would be worth $200,000. Hougan also says that if Bitcoin matures and the store-of-value market doubles, the value of Bitcoin could soon reach seven figures.