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Matt Hougan, Chief Investment Officer (CIO) at the Bitwise Invest fund, has opposed the founder of Sevens Reporter over the jab the latter has taken at Bitcoin recently.
Tom Essaye, a former Merrill Lynch trader who founded Sevens Reporter, has sent a critique of the world’s largest cryptocurrency, calling it a “simply speculative asset.”
Hougan believes that Bitcoin has much better prospects by 2050 than Essaye says about BTC’s present.
Bitwise Invest CIO makes big Bitcoin 2050 prediction
Matt Hougan responded to a tweet, in which shared a screenshot of Essaye’s recent Bitcoin critique. Hougan called this take on Bitcoin “terrible.” Referring to Bitcoin as an emerging store of value, he said that it is not right to expect it to be as mature as gold in just over a decade.
The Bitwise Invest CIO believes that by approximately 2050, every central bank will own Bitcoin, and owning BTC for them will be as normal as holding gold. He insists that currently Bitcoin is going through a certain maturity stage that can by no means be avoided or jumped over. This maturing requires time, he says.
Meanwhile, Tom Essaye slammed Bitcoin, saying that it is not replacing gold, it is not digital gold and it “doesn’t give people the same utility that gold does.” He added that Bitcoin is not an inflation hedge or a chaos hedge either. There are a lot better hedges, he claimed, where investors do not have to worry about volatility.
Bitcoin plunges 40% from its ATH
The world’s biggest cryptocurrency has been crashing recently, gradually sinking below $70,000, and earlier today having dropped to the $64,200 level briefly. Overall, BTC is changing hands roughly 40% under its October all-time high of $126,000.
This deep price plunge is happening despite fast-growing Wall Street and institutional adoption, and the support from the U.S. government. Bloomberg analysts believe that Bitcoin is currently facing the problem of “purpose” as it lacks the fundamentals that traditional assets have. One of the big reasons for this is that the pro-crypto U.S. government, as well as the long-standing Bitcoin evangelist Jack Dorsey, began to focus their attention on stablecoins for payments, rather than on BTC. The majority of stablecoins run on Ethereum.
However, Bitcoin bulls still point at Bitcon’s hard cap of 21 million supply as the major fundamental.
Vladislav Sopov
Dan Burgin