Summary
- Bitwise analyzed that if Bitcoin is adopted as portfolio insurance against national debt risk, its fair value could exceed $219,000.
- Due to the increasing debt risk of major economies, Bitcoin is seen as capable of serving as a hedge against defaults.
- However, Bitcoin's significant volatility may not be attractive to investors seeking stability.
According to the cryptocurrency-focused media The Block on the 21st (local time), Bitwise reported that "if the United States uses Bitcoin (BTC) as 'portfolio insurance' against national default risk, the fair value of BTC could exceed $219,000 per unit." The report stated, "Major economies such as the United Kingdom, France, and the United States are facing increasing national debt risks," adding, "The UK is at the peak of market concerns over soaring interest costs and loan demand, while the US is on the brink of a $36 trillion debt ceiling." It continued, "In such a situation, Bitcoin can serve as a hedge against default in major government bond baskets," but added, "However, due to Bitcoin's high volatility, it may not be an attractive option for investors seeking stability." 
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
