Matt Hougan, Chief Investment Officer of Bitwise Asset Management, addressed a urgent query amongst buyers: Does the US greenback must collapse for Bitcoin to achieve a valuation of $200,000 per coin? Hougan’s evaluation means that Bitcoin’s ascent to such a worth degree doesn’t rely on a decline within the US greenback’s worth however relatively on Bitcoin’s maturation as a store-of-value asset and international financial elements growing demand for such property.
Bitcoin Can Reach $200,000 Without US Dollar Collapse
In a sequence of posts on the social media platform X, Hougan recounted a dialog with a monetary advisor who posed the query over dinner. “Does the US dollar need to collapse for Bitcoin to hit $200,000? The answer is ‘no.’ Here’s why,” Hougan wrote.
Hougan defined that investing in Bitcoin entails making two distinct bets. First, “Bitcoin will succeed in establishing itself as a new ‘store of value’ asset.” Currently, Bitcoin’s market capitalization is roughly 7% of gold’s $18 trillion market. Hougan famous, “If it ‘matures’ and turns into 50% the size of gold, each Bitcoin is value over $400,000.
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Second, “Governments will abuse fiat currencies and increase demand for ‘store of value’ assets.” If the marketplace for store-of-value property triples in dimension because of such mismanagement, and Bitcoin maintains its 7% market share, “each Bitcoin is worth over $200,000.”
He emphasised that these two arguments are impartial however can compound. “If Bitcoin matures and the store of value market doubles, you quickly get to seven figures. For what it’s worth (FWIW), I think this is the most likely scenario eventually,” Hougan acknowledged.
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Addressing the preliminary query immediately, Hougan asserted, “So, no, the dollar doesn’t 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 each elements—BTC’s maturation and potential fiat currency abuse—are more and more more likely to happen concurrently. “That’s why Bitcoin is surging toward all-time highs.”
The dialogue continued with enter from Kevin Brent Cook, a person on X, who added nuance to Hougan’s clarification. “Concise, clear, and simple,” Cook remarked. “I would only add that the reason a ‘collapse’ isn’t 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 Cook’s evaluation, responding with a succinct “Agreed.”
At press time, BTC traded at $72,445, up 23% within the final 20 days.
Featured picture created with DALL.E, chart from TradingView.com
