U.S. Dollar Does Not Need to Collapse Before BTC Hits $200K: Bitwise CIO

Matt Hougan, the chief information officer of the crypto index fund and exchange-traded fund (ETF) provider Bitwise, insists that the United States dollar (USD) does not need to lose its value for bitcoin (BTC) to surge to $200,000.

In an X thread, Hougan revealed that a financial advisor had asked the question during a dinner appointment a few days ago. His answer was negative because any market participant investing in BTC makes two bets simultaneously.

No Need for a USD Collapse

According to Hougan, the first bet a trader makes while investing in BTC is that the cryptocurrency will succeed in establishing itself as a store of value. The second bet is that demand for store-of-value assets will increase as governments abuse fiat currencies.

The Bitwise CIO asserted that the first bet entails Bitcoin maturing and becoming an asset class with a market cap worth trillions of dollars. Bitcoin’s $1.4 trillion market cap is approximately 7% of gold’s $18 trillion cap. If the cryptocurrency grows to become 50% the size of gold in the future, then each BTC would be worth nearly $400,000.

For the second bet, Hougan explained that the store-of-value market is growing because governments are abusing their local currencies through the incessant printing of money. If the store-of-value market triples and Bitcoin accounts for roughly 7% of its share, then each BTC would become valued at approximately $200,000.

While these arguments are separate, Hougan believes they are linked. Bitcoin’s price would quickly hit seven figures if the cryptocurrency matures and the store of value market doubles in size.

“FWIW, I think this is the most likely scenario eventually,” the Bitwise executive stated.

BTC Becoming an Institutional Asset

Hougan insisted that all BTC needs to do is to continue maturing as an institutional asset and watch the market work in its favor because both arguments will likely come true. This is already evident in BTC rallying to new all-time highs.

“So, no, the dollar doesn’t need to collapse for bitcoin to hit $200k,” he added.

Notably, the Bitwise information chief concurred with a comment that backed his claim that a USD collapse is unnecessary for BTC to reach $200,000 because the consistent abuse of fiat currencies naturally creates more money chasing all store-of-value assets.