Despite Bitcoin (BTC) trading approximately 40% below its all-time highs and striving to maintain stability above the $70,000 mark, the long-term optimistic view on its value remains intact, particularly according to Matt Hougan, Chief Investment Officer at Bitwise Asset Management.
The Path To $1 MillionHougan presents a straightforward method for estimating BTC’s potential value. The process involves gauging the size of the store-of-value market, determining Bitcoin’s share of that market, and then dividing by its capped supply of 21 million coins.
According to Hougan, this figure may lead many to believe that a $1 million price tag for Bitcoin is unrealistic, especially since, to reach that valuation, Bitcoin would need to capture more than 50% of the store-of-value market.
Bitcoin’s Potential GrowthA key point in Hougan’s analysis is that the market for storing value is expected to expand dramatically. He predicts that within ten years, this global market could reach approximately $121 trillion.
While Hougan acknowledges the optimism surrounding this prediction, he also highlights potential risks. If the global store-of-value market does not continue to grow as it has over the past two decades, there could be a downturn in gold prices. Furthermore, Bitcoin might struggle to capture additional market share.
He emphasizes that the prevailing outlook—where both the store-of-value market continues to expand, and BTC increases its share—could imply significantly higher prices than today.
Featured image from OpenArt, chart from TradingView.com
