Bitcoin has lately been gaining significant market attention. The token has been a solid safe haven asset during such stark times, times when war narratives are changing the geopolitical landscape. In addition to this, the ongoing war witnessed the fall of gold at a time when it should have gained market prominence. In other words, are we witnessing the start of an era where Bitcoin is slowly taking over gold? Here’s what Bitwise Matt Hougan has to say on this.
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Bitcoin Vs. Gold: Better Safe Haven?
Since the start of the US-Iran War, the world has witnessed a peculiar narrative, the one where BTC won a great deal against gold. Iranians were noted for sorting refuge in the BTC, whereas gold was spiraling down the line, exploring new price lows. Per Matt Hougan, CIO of Bitwise, Bitcoin’s total addressable market now exceeds that of gold, surpassing $34T in numbers. At the same time, BTC is up 12%, with gold at 10% leading the safe haven race.
In addition to this, Hougan went ahead to predict a bold BTC call, stating how the asset is capable of hitting $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 Predicted
Matt Hougan further shared his reasoning behind the aforementioned prediction. He shared how bitcoin may soon emerge as a key store of value competing with gold. In addition to this, it can also be used for offshore wealth tied to real estate or forex reserves, giving it more power to dominate the sector.
“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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