In a recent discussion, Matt Hougan, Chief Investment Officer of Bitwise Asset Management, asserted that Bitcoin would require the US dollar to collapse in order for the coin to reach prices of $2,000 per Bitcoin.
In saying that, Hougan says the potential of Bitcoin to get to this valuation is not dependent on a falling dollar, but on the same conditions as everything else: on its rise as a store-of-value asset alongside all other economic conditions.
In a post on social media platform X, Hougan shares an anecdote from a dinner conversation with a financial advisor who asked the question of whether the dollar was needed for Bitcoin’s climb. “I can affirm the answer is ‘no,’” he said, noting that the key to investing in Bitcoin lies in two factors:
Bitcoin As Store Of Value
First, he added that “Bitcoin has to make itself out to be a new ‘store of value’ asset.” Gold’s $18 trillion market is 7% Bitcoin’s today. If Bitcoin can grow to account for 50 percent of the value of gold, BTC could rise past even $400,000 per coin.
Second, Hougan mentioned that ‘Governments can abuse fiat currencies, and demand for store of value assets may rise. If these assets were mismanaged such that the market tripled, BTC would be up to 1 in 3 of the market, for each BTC to be worth well north of $200,000.
These arguments are independent, but they can complement each other, he said. With your BTC maturing and the store of value market growing to double its size, you get a quick seven figures. Hougan said he believes this is the most likely scenario.
He clarified in addressing the original questions, no, the dollar doesn’t need to collapse for BTC to hit $200,000. “It has to just go on maturing BTC as an institutional asset.” Further, he said, both are increasingly likely to occur at once, adding to BTC ascent to all-time highs.
It continued, advanced by X user Kevin Brent Cook with context: a dollar collapse is not necessary as we are experiencing an inflation caused by deficit spending. “The more currency chasing all assets, that’s what this is doing.”
