According to Matt Hougan, CIO of Bitwise, there has never been a better time to buy Bitcoin than today. While there were enormous risks associated with Bitcoin in its early years, Hougan now believes these risks have largely been eliminated.
Bitcoin is less risky today
In the early years, there was still great concern about a blanket ban by governments. After all, Bitcoin was intended as an alternative to sovereign money – a currency beyond the control of governments and other central institutions.
Technological risks also played a greater role back then. People didn’t know how resilient Bitcoin really was. Perhaps Satoshi had made a critical error in the code somewhere – such considerations were not uncommon back then.
Today, Matt Hougan sees these risks as almost completely eliminated. According to Hougan, the introduction of Bitcoin ETFs in the United States and the national reserve policy under the Trump administration have led to Bitcoin taking its place in the global financial system.
“Bitcoin is currently only 10 percent of gold. To catch up with gold – which I believe is just a stepping stone on Bitcoin’s long journey – Bitcoin would have to increase tenfold,” says Hougan.
This is just the beginning
For Hougan, the comparison with gold is only the first step. He sees institutional adoption of Bitcoin as just beginning to gain momentum.
“There’s simply too much structural, long-term demand that’s entered this market, while supply remains severely limited,” adds Hougan.
For now, however, gold is still the star of the financial markets. While Bitcoin is going through a difficult phase, the price of gold is constantly reaching new all-time highs.
That could change, of course, but for now, overtaking gold as the world’s largest store of value remains a dream for Bitcoin supporters.
According to Bitwise CIO Matt Hougan, the risk-reward ratio for Bitcoin has never been more attractive.
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