Matt Hogan, head of Bitwise's research department, currently awaiting a decision from the U.S. Securities and Exchange Commission (SEC) on his application for the launch of the crypto-ETF, believes that Bitcoin behaves like gold in the 1970s, when its price rose by 1,365% in a decade.
In an article for Forbes, Hogan explains what makes today's Bitcoin situation similar to that of gold at the time.
"The 1970s was a time when the United States abandoned the gold standard. At the time, people didn't know what to think about gold. Will it become a safe asset from the dollar or will it become a "barbaric relic", as John Maynard Keynes once called it? The result was a period of significant volatility as the two forces struggled with each other," he writes.
According to Hogan, volatility is an inherent characteristic of Bitcoin at a time when the cryptocurrency is trying to gain trust and establish itself as a means of accumulation.
"This is exactly the risk. The possibility that gold can be thrown into the trash canister of history, like cowry shells or other forgotten means of accumulation, has led to high volatility, and then high profitability. As the confidence that gold will continue to serve as a means of accumulation grows, yields have increased, and investors have allocated more and more space for it in their portfolios. The same process is happening with Bitcoin today," Hogan says. - Maybe some time ago Bitcoin will also become incredibly boring. But there is a high probability that if we get to this point, the price will be much higher than today's.
Earlier, general partner of Blockchain Capital Spencer Bogart expressed the opinion that Bitcoin may not meet the expectations of optimistic investors in case of a serious financial crisis.