Bitwise Asset Management’s chief investment officer, Matt Hougan, spoke up on social media to defend Bitcoin. He argued that skeptics who say Bitcoin is a failed store of value are missing an important point. He says Bitcoin is going through a volatile teenage phase. This kind of volatility is normal for many new forms of money as they grow and try to find a stable place in the market.
The discussion happened after a wave of criticism about Bitcoin’s purpose and its current price action. The debate was re-ignited by a Bloomberg article. The article called Bitcoin’s market downturn an existential struggle. It asked a big question: what is Bitcoin for if it cannot act as a hedge, a payment system, or a pure speculative asset?
In the Bloomberg piece, Tom Essaye, a former Merrill Lynch trader, weighed in. He said Bitcoin is not replacing gold. He added that Bitcoin is not digital gold and questioned how useful it is as an inflation hedge or as a tool for keeping chaos in check. These statements added to a growing conversation about the asset’s value and purpose.
Hougan responded to these points with a broader view. He did not say Bitcoin must immediately become a perfect, gold-like asset. He reminded people that in 2009 Bitcoin was 100 percent speculation. He also described a future around 2050 where Bitcoin could be owned by central banks and be seen as less speculative. He explained that you cannot move from 100 percent speculation to 0 percent speculation in one step. There are many steps in between. He said Bitcoin does not fit neatly into any single box today because it is in a difficult middle stage. He called this middle stage a necessary part of Bitcoin’s long journey toward maturity.
The timing of Hougan’s defense matters because Bitcoin’s price has tested the patience of many investors. The asset recently lost thousands of dollars from its value after news that the United States president announced a 10 percent temporary global tariff. This kind of news can shake markets and cause big moves in price.
A separate signal that traders watch showed up in online searches. Google searches for the phrase “Bitcoin is dead” spiked to levels not seen since the FTX collapse in late 2022. Some traders view such spikes as contrarian signals. In other words, when many people are negative, some believe a bottom may be near and a rebound could come later.
Hougan’s argument includes a historical look at how new types of money move in the market. He first explained this idea in a 2018 Forbes article. He used gold as a comparison. After the United States ended the gold standard in 1971, gold’s price moved a lot as the market tried to redefine how it could be used as money. The so-called Nixon shock—the moment when the U.S. government stopped guaranteeing the dollar’s value with gold—created big price swings. In 1974, gold rose 73 percent. Then, in 1975, it fell by 24 percent. And in 1981, gold fell 33 percent after a large gain in 1980. These numbers show how fast and how much prices can move in volatile times.
Hougan argues that Bitcoin is following a similar pattern. After a rapid rise in price, the pace of gains slows down. The volatility remains high, but it tends to decline over time as the asset matures. In his view, Bitcoin’s large moves today are part of a long-term process. This process could lead to a more stable role in the market in the future, rather than a rapid collapse.
According to Hougan, the current drop from Bitcoin’s peak in October 2025—near 126,000 dollars—by about half is not a sign that Bitcoin has failed. Instead, he sees it as a sign that Bitcoin, as an asset class, is maturing. He describes maturity as a change from very rapid price increases and big swings to a more balanced pattern over time. This kind of change has happened with other new kinds of money, and supporters say it can lead to a stronger and more lasting role for Bitcoin down the road.
Overall, Hougan presents Bitcoin as still being in a very early stage. He calls this a teenagers’ phase for a new kind of money. He believes a true digital store of value could emerge only after more time and greater use by large institutions. For readers who want quick definitions of key terms, here are some helpful explanations with links to Wikipedia:
Bitcoin is the first decentralized cryptocurrency.
Store of value is an asset that can retain its purchasing power into the future and can be saved, retrieved, and exchanged later, serving as a way to transfer value over time.
Gold standard is a monetary system in which the standard unit of account is based on a fixed quantity of gold.
Nixon shock refers to a set of measures by U.S. President Richard Nixon, including the unilateral cancellation of the direct international convertibility of the U.S. dollar to gold, which effectively ended the Bretton Woods system.
Cryptocurrency is a digital currency designed to work through a computer network that is not reliant on any central authority to uphold or maintain it.
The article about Matt Hougan’s view appeared on CryptoPotato, and it captures how the debate about Bitcoin’s future is ongoing. It shows that even experienced investors can disagree on what Bitcoin is becoming and when it will reach a more stable phase. As markets move and news comes in, supporters and skeptics alike will watch prices, sentiment, and use by bigger institutions to gauge where Bitcoin might go next.
Leave a Reply