Most people ask themselves whether they should invest in Bitcoin today or not. In the opinion of Matt Hougan, chief investment officer at Bitwise, now could be the right time. In a recent interview, he said that Bitcoin has never been in a better position. The risks that previously discouraged people are now much smaller, and demand for Bitcoin is increasing rapidly.
Bitcoin Is Less Risky Than Ever Before
In the beginning, Bitcoin was perceived to be risky. People were concerned about its technology, security, and whether the government would approve of it. Others believed Bitcoin was a trend that would fizzle out. But times have changed. Today, Bitcoin has the support of large financial institutions, and governments are taking notice. The introduction of Bitcoin ETFs has also simplified investing for individuals. This has made Bitcoin a more stable and reliable asset.
Bitcoin Could Grow 10 Times in Value
Hougan thinks that Bitcoin has much room to expand. Currently, Bitcoin is valued at only 10% of gold’s combined market value. He believes that if Bitcoin equals the level of gold, then its value would grow tenfold. And this is just the tip of the iceberg. Most analysts think that Bitcoin may ultimately be worth significantly more than gold due to its strengths, including simple storage, controlled supply, and worldwide availability.
Why Supply and Demand Matter
One of the biggest reasons Bitcoin’s price might continue to appreciate is the fundamental principle of demand and supply. There will never be more than 21 million Bitcoins, and a big proportion of them are already owned by long-term holders. In contrast, more and more people, firms, and even governments are interested in buying Bitcoin. As demand grows strong, and supply weak, prices go up.
Institutional Investors Are Coming
A major reason why Bitcoin can grow bigger is the mounting interest from giant investors. Mega corporations, hedge funds, and even governments have begun to take positions in Bitcoin as a long-term investment vehicle. When this big money invests, the money they pump into the space is enormous and can drive the prices even more. Such interest propels Bitcoin from a specialty asset to mainstream investment.
A Solid Investment for the Future
No investment is ever entirely risk-free, and Bitcoin still has some hurdles to overcome. Prices are volatile, and the market can be unpredictable. But Hougan thinks the long-term trend for Bitcoin is clear—it is becoming a significant part of the world’s financial system.
For investors looking to purchase Bitcoin, this may be the ideal time. The threats that previously had investors on edge are diminishing, and the potential for growth is as great as it has ever been. Whether Bitcoin will hit record highs or not is uncertain, but most would agree that its best days have yet to come.
