Bitcoin could rise by 2,230%, as it can become a legitimate way to store wealth, says the chief investment officer of crypto asset manager, Bitwise Investments. He does not name a timeframe, but he believes that the $500,000 mark for 1 BTC is real.
In a new interview with Stansberry Research (via Daily Hodl), Bitwise CEO Matt Hougan said Bitcoin could rise 2,230% from its current price of $21,460 (at the time of writing) as he believes BTC will come close to gold’s market capitalization of more than $11 trillion.
“I think it’s perfectly rational to believe that Bitcoin could trade to half a million dollars over time. The way I picked that number out of the hat is if Bitcoin held as much wealth as is held in gold, it would be about half a million dollars a Bitcoin.”
Hogan said he sees Bitcoin's market capitalization rising to great heights as BTC surpasses gold as a store of value asset.
“If you think out five or ten years, could Bitcoin be as big a store wealth as gold? I think the answer is yes. And that leads to half a million dollars a bitcoin. Will we get there? I don't know. But I think that’s certainly within the realm of possibility.”
Investment strategist Bitwise said that Bitcoin is currently in an “appreciation phase” similar to the one gold went through in the early 1970s, just after the US government ended the gold standard—a monetary system where the US dollar was convertible into a fixed amount of gold.
“[Bitcoin] is the new digital gold. It's better than gold and everything gold tries to do. You can move it faster, it's harder to fake, it's easier to store [and] it's harder to falsify. It is the new gold.
If I’m right that people are going to think of it [Bitcoin] long term as a legitimate way to store wealth, it’s going through that same appreciation phase [as gold]. This is when you want to own stores of value - when the world is figuring out that they're valuable, when they're emerging stores of value. And that's where bitcoin is.
That’s why it’s been the best performing asset in the world over the last 10 years and I think it has huge potential in the future because still very few people own it.”
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.