Bitcoin News – Bitcoin’s Market Cap vs. Gold: A Future Worth $400,000?
Bitcoin News – Matt Hougan, the chief investment officer of Bitwise, predicts that Bitcoin’s price could soar into six-figure territory if it matures as a store-of-value asset and if governments continue to debase their fiat currencies. In a post on X dated October 29, Hougan addressed a financial advisor’s query about whether Bitcoin could reach a value of $200,000 without a collapse of the US dollar.
Dual Bets on Bitcoin’s Future
“When you invest in Bitcoin, you’re actually making two bets at once,” Hougan explained. He emphasized that Bitcoin will succeed in establishing itself as a new store-of-value asset, while governments continue to “abuse fiat currencies.” This situation will naturally drive demand for hard assets like BTC.
Market Capitalization and Future Value
Currently, Bitcoin’s total market capitalization stands at $1.4 trillion, which is about 7%-8% of gold’s $18 trillion market cap. Hougan believes that Bitcoin can “mature” and potentially reach half of gold’s total value, making one Bitcoin worth approximately $400,000. He stated that as governments print more money, investors will increasingly seek out store-of-value assets like Bitcoin.
Tripling Demand for Bitcoin
If Bitcoin maintains just a 7% share relative to gold, and if demand for Bitcoin triples, each Bitcoin would then be valued at $200,000. Hougan remarked, “Importantly, these arguments compound. If Bitcoin matures and the store of value market doubles, you quickly get to seven figures.” He sees this scenario as the most likely outcome in the future.
Rising Demand Amid Economic Uncertainty
The demand for traditional store-of-value assets, such as gold, has surged amid global economic uncertainty and rising geopolitical tensions, especially in the Middle East. Gold prices hit a new all-time high of $2,778 per ounce on October 29, highlighting this trend.
Implications of US Dollar Devaluation
According to an October 29 report from Financial Sense, economists Marc Fasteau and Ian Fletcher argue that continued devaluation of the dollar is likely to form a core part of the United States’ industrial policy. They propose that such a policy should include support for new technologies and protection against subsidized competition, alongside efforts to lower the dollar’s value.
Bitcoin’s Recent Market Performance
Several market commentators suggest that Bitcoin is on the verge of reaching an all-time high in the coming weeks. On October 29, Bitcoin nearly hit its March all-time high, tapping $73,562 during late trading, according to CoinGecko data. As of publication, Bitcoin was trading slightly lower at $72,392.
In summary, as Bitcoin’s potential to establish itself as a store-of-value asset becomes clearer, its price could rise dramatically, driven by increased demand and the ongoing devaluation of fiat currencies.
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