Matt Hougan: “Bitcoin is an ‘awkward middle stage’… part of the path to becoming a store of value”

As criticism persists that Bitcoin (BTC) is still little more than a speculative asset, the industry has pushed back, arguing this is an inevitable phase in its maturation.

On the 23rd, Matt Hougan, chief investment officer (CIO) at Bitwise, wrote on his X (X, formerly Twitter) account that “this assessment is misguided,” adding that “Bitcoin is an emerging store of value.”

Hougan noted, “You can’t demand that Bitcoin go from having no foundation to instantly becoming a mature asset like gold.” Citing 2009, he explained, “Back then, Bitcoin was like a newborn—100% speculation.” By contrast, he argued that “by 2050, or at the point when all central banks hold it and it becomes as commonplace as gold, its speculative element will be close to 0%.”

He said, “In moving from 100% speculation to 0% speculation, it has to pass through every stage in between,” adding, “The reason Bitcoin doesn’t neatly fit into any single asset category right now is precisely because it is at this awkward midpoint.” He emphasized, however, that “this is an essential part of the journey.”

Hougan said that unless one believes the creation of a digital store of value is fundamentally impossible, it is inevitable that Bitcoin must pass through a transitional period like the current one.

He added, “If you don’t believe a digital store of value is impossible, you have to be able to imagine Bitcoin going through this ‘teenage phase.’”