Bitwise CIO Supports Bitcoin’s Long-Term Value
Bitwise Chief Investment Officer Matt Hougan says Bitcoin (BTC) is still valuable. He believes Bitcoin helps investors store wealth digitally.
Despite recent price drops, Hougan says Bitcoin’s value comes from its use. He sees Bitcoin as a service that lets people keep wealth without banks or governments.
Bitcoin’s Growing Adoption and Demand
Bitcoin has gained more users over the last 10 years. Many investors want a way to protect their capital that is independent of companies or states.
“Bitcoin’s price rose 28,000% in ten years because people want to store digital wealth without intermediaries,” Hougan wrote in a note to investors on Tuesday.
He adds that demand is growing from endowments, sovereign wealth funds, and major investors. This demand will likely grow as debt rises and digitization spreads.
Bitcoin Compared to Microsoft’s Demand Model
- Hougan compares Bitcoin’s value to Microsoft’s business model.
- Microsoft sells access to software with subscription fees.
- Bitcoin offers a similar service without a company or fees.
- Its value depends on how many want to store wealth digitally.
- Investors get access by owning Bitcoin itself.
Hougan notes Bitcoin’s price depends solely on demand for its wealth-storage service. This differs from companies that earn revenue directly from users.
Currently, Bitcoin’s price is down. It recently dropped below $90,000—the first time in over six months.
At the time of writing, BTC trades around $92,700, down 2% in the last 24 hours.
