The investment director of Bitwise Matt Housogan said that the world begins to realize the “madness of the experiment with fiat money”, so the central banks are buying record volumes of gold, and private individuals – bitcoins.

Hawgan recalled that in 1971 the United States abandoned the gold standard, that is, they stopped exchanging dollars for gold at the request of other central banks. The BitWise investor said that, as a finance specialist, he worked all his life in a world based on fiat money. In this world, the money supply of the country is created not on the basis of accumulated reserves, such as gold or silver, but on what the government will choose. The BitWise top manager believes: more and more people begin to understand that the era of fiat money is an abnormalities.

“When most of us studied at school, the appearance of fiat money seemed inevitable progress, like creeping from dirt. People thought that gold was money, and we laughed. It is possible to print money from the air, as we began to do this in 1971, in fact, wildness. For reliable money, restrictions are needed, ”Housogan said, hinting at a limited Bitcoin offer of 21 million coins.

According to the observations of the BitWise investment director, private investors are already aware of the risks of uncontrolled printing of money by central banks, so more and more people buy bitcoin, regarding it as a “digital alternative to gold”. The expert noticed that the Bitcoin exchange funds (ETF) have already attracted capital for $ 45 billion – this amount exceeds $ 34 billion, which since January 2024 entered the ETF, tied to gold.

Against the backdrop of the US, approaching $ 37 trillion, last year, the gold overtook the euro and became the second largest reserve asset. Hawgan explained this by the fact that central banks tend to hedge the risks and stock up on assets resistant to political manipulations. The current market capitalization of bitcoin above $ 3 trillion is still too small for the Central Bank to be able to enter the cryptocurrency market-although the demand for digital assets is growing, the BitWise top manager added.

Recently, Housugan urged investors not to add cryptocurrency thoughtlessly to an investment portfolio so as not to make it too volatile. Earlier, the expert advised not to hide on one bitcoin, but to pay attention to altcoins.