In a prolonged thread on the X social media, Bitwise CIO Matt Hougan predicted that the value of Bitcoin, the main cryptocurrency, might nonetheless be “heading larger” after including 9,700% over the previous 10 years.
The cryptocurrency lately got here beneath renewed promoting strain, plunging beneath the $63,000 degree. Nevertheless, many analysts consider that it might doubtlessly soar into six-figure territory this 12 months.
Hougan believes that Bitcoin has worth because it gives the flexibility to retailer wealth in a digital format with out counting on any centralized entity. This may be considered as another service of the likes of Salesforce.
As an alternative of paying a charge, those that wish to retailer their wealth safety are supposed to purchase Bitcoin. “With this framing, valuation questions drop away. If extra individuals need Salesforce’s service, the worth of Salesforce goes up; if fewer individuals need its service, the worth of Salesforce goes down; and if zero individuals need its service, the worth of Salesforce is zero,” Hougan added.
The Bitcoin worth is correlated with the quantity of people that wish to use the service supplied by the main cryptocurrency. “However the finish consequence is identical: Extra demand, extra worth; much less demand, much less worth; no demand, no worth. It is actually not that totally different in any case,” he stated.
This counters the arguments about Bitcoin having no worth that’s often made by anti-Bitcoin voices. As an example, gold bug Peter Schiff has repeatedly slammed the main cryptocurrency as a purely speculative asset that’s destined to fail.