Can Bitcoin Hit $200,000 Only If The Dollar Falls? Bitwise CIO Answers
Matt Hougan, Chief Investment Officer of Bitwise Asset Management, addressed a pressing question among investors: Does the US dollar need to collapse for Bitcoin to reach a valuation of $200,000 per coin? Hougans analysis suggests that Bitcoins ascent to such a price level does not depend on a decline in the US dollars value but rather on Bitcoins maturation as a store-of-value asset and global economic factors increasing demand for such assets.
Bitcoin Can Reach $200,000 Without US Dollar Collapse
In a series of posts on the social media platform X, Hougan recounted a conversation with a financial advisor who posed the question over dinner. Does the US dollar need to collapse for Bitcoin to hit $200,000? The answer is no. Heres why, Hougan wrote.
Hougan explained that investing in Bitcoin involves making two distinct bets. First, Bitcoin will succeed in establishing itself as a new store of value asset. Currently, Bitcoins market capitalization is approximately 7% of golds $18 trillion market. Hougan noted, If it matures and becomes 50% the size of gold, every Bitcoin is worth over $400,000.
Second, Governments will abuse fiat currencies and increase demand for store of value assets. If the market for store-of-value assets triples in size due to such mismanagement, and Bitcoin maintains its 7% market share, each Bitcoin is worth over $200,000.
He emphasized that these two arguments are independent but can compound. If Bitcoin matures and the store of value market doubles, you quickly get to seven figures. For what its worth (FWIW), I think this is the most likely scenario eventually, Hougan stated.
Addressing the initial question directly, Hougan asserted, So, no, the dollar doesnt need to collapse for Bitcoin to hit $200,000. All you need is Bitcoin to continue on its current path of maturing as an institutional asset. He added that both factorsBTCs maturation and potential fiat currency abuseare increasingly likely to occur simultaneously. Thats why Bitcoin is surging toward all-time highs.
The discussion continued with input from Kevin Brent Cook, a user on X, who added nuance to Hougans explanation. Concise, clear, and simple, Cook remarked. I would only add that the reason a collapse isnt necessary is that under abusing fiat comes the steady grind of deficit-driven dollar inflation (the US writes endless checks that never bounce), which naturally creates more currency chasing all assets.
Hougan concurred with Cooks assessment, responding with a succinct Agreed.
At press time, BTC traded at $72,445, up 23% in the last 20 days.
Read more: https://www.newsbtc.com/news/bitcoin/bitcoin-200000-only-if-the-dollar-falls-bitwise-cio/
Text source: NewsBTC
