Bitcoin’s reputation as a store of value continues to evolve. Bitwise’s chief investment officer, Matt Hougan, recently shared his thoughts on where Bitcoin is headed. In a chat on the Insightful Investor YouTube channel, Hougan drew some interesting comparisons, even likening Bitcoin to gold.
Bitcoin as a Store of Value
Hougan argues that Bitcoin has reached a point where it can be seen as a store of value, much like gold. He points out that stores of value, like gold, typically show a pattern—one where volatility gradually decreases as the asset’s price rises. According to him, Bitcoin is following this path.
“If you look since Covid, the US dollar has lost 25% of its value, while Bitcoin has shot up about 800%,” Hougan explains. He also notes that even gold is quite volatile, and Bitcoin’s slightly higher volatility means it could offer more potential upside.
Stability Doesn’t Happen Overnight
Hougan believes that investing in Bitcoin will eventually become as uneventful as investing in gold. However, getting there takes time. A store of value doesn’t appear out of nowhere; it has to grow through cycles of rising prices and decreasing volatility. This is the journey Bitcoin is on, and Hougan thinks it will continue along this path.
Volatility and Unexpected Crises
While Bitcoin has come a long way, its price still moves in real time, making its volatility feel more immediate to investors. Hougan notes that Bitcoin’s price isn’t just affected by market forces but also by broader events, like political outcomes and economic decisions.
“I have confidence in where Bitcoin is going, but the speed of that journey is uncertain,” Hougan says. Factors like U.S. elections, national debt, and unexpected crises can sway Bitcoin’s pace. For example, if Bitcoin were a startup, its real-time pricing would make its ups and downs much more visible than a typical early-stage company, Hougan adds.
As of now, Bitcoin trades at $58,840, reflecting a 0.81% dip in the past 24 hours. You can watch the entire interview with Matt Hougan in the video below: