$1 Million Per Bitcoin? Bitwise’s CIO Says It Is Not A “Moonboy” Prediction

Instead of characterizing the goal as speculative optimism, Hougan describes how the flow of capital into Bitcoin is gradually changing its long-term perspective. Currently, there is around $38 trillion in the global store-of-value market, which is the pool of money invested in hard assets like gold and real estate with the express purpose of preserving wealth. 

Meanwhile, BTC controls a share of 4%, valued at around $1.4 trillion, and that market does not sit still. Over the past 20 years, increased debt, lax monetary policy, and geopolitical tensions have caused gold to rise from $2.5 trillion to $40 trillion. Today, each one of these tailwinds is still active across the broader financial sector. 

After analyzing Hougan’s thesis, Milk Road noted that the executive is being transparent about the risks involved. If the store-of-value market loses steam or Bitcoin does not capture the expected share, the math fails. Therefore, there is no guarantee of the thesis.