In a lengthy thread on the X social media, Bitwise CIO Matt Hougan predicted that the price of Bitcoin, the leading cryptocurrency, could still be “heading higher” after adding 9,700% over the past 10 years.
The cryptocurrency recently came under renewed selling pressure, plunging below the $63,000 level. However, many analysts believe that it could potentially soar into six-figure territory this year.
Hougan believes that Bitcoin has value since it offers the ability to store wealth in a digital format without relying on any centralized entity. This can be viewed as any other service of the likes of Salesforce.
Instead of paying a fee, those who want to store their wealth security are supposed to buy Bitcoin. “With this framing, valuation questions drop away. If more people want Salesforce’s service, the value of Salesforce goes up; if fewer people want its service, the value of Salesforce goes down; and if zero people want its service, the value of Salesforce is zero,” Hougan added.
The Bitcoin price is correlated with the number of people who want to use the service offered by the leading cryptocurrency. “But the end result is the same: More demand, more value; less demand, less value; no demand, no value. It’s really not that different after all,” he said.
This counters the arguments about Bitcoin having no value that is frequently made by anti-Bitcoin voices. For instance, gold bug Peter Schiff has repeatedly slammed the leading cryptocurrency as a purely speculative asset that is destined to fail.
