Institutions are looking for “non-debt money” in Bitcoin, says Bitwise CIO Matt Hougan – here’s what he means
The chief investment officer of crypto fund manager Bitwise says major investors are now looking at Bitcoin (BTC) as a way to mitigate the risks of economic headwinds.
In a new interview on YouTube channel Cheddar, Matt Hougan says institutions are taking a close look at Bitcoin amid concerns about persistent inflation and the U.S. government's rapid accumulation of debt.
“We have been meeting with financial advisors, family offices and even foundations over the last few months since the launch of the Bitcoin ETF (Exchange Traded Fund) and what I have heard most from these investors is what they are really worried about.” About – the potential for inflation to flare up again. What really worries them is rising debt and they see that Bitcoin can be a hedge for their portfolio against these risks…
The real concern that people are focusing on hedging themselves with Bitcoin is the inflation and debt risk.”
According to Hougan, people are becoming increasingly aware that Bitcoin is one of only two assets that are not backed by debt.
“I think a lot of investors are waking up and realizing they don't have any money that doesn't come from debt. What is debt-free money? It's either Bitcoin or Gold. I see a lot of investors choosing to own both and I think that is the dominant paradigm in the market right now.”
Hougan says both gold and Bitcoin allow investors to store money outside of centralized institutions without relying on fiat currencies, but points out that the crypto king has more upside and risks because it is one relatively new asset.
“Gold is a very mature asset. Bitcoin is an emerging store of value. This means that Bitcoin has greater upside potential but also higher volatility. So they play slightly different roles, but offer investors the same general service, which is a way to get out of the fiat currency system and have some debt-free money in the portfolio. ”
At the time of writing, Bitcoin is worth $65,095.
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