Investors are increasingly questioning the stability of the fiat system, said Matt Housogan investment director of Bitwise Asset Management. He compared his acceptance with the “experiment”, in which people do not realize their habitat – like fish that do not notice water around them.
According to the expert, the abandonment of the gold standard in 1971 was a turning point. Now, against the backdrop of a shortage of trust in states, interest in alternatives like bitcoin and precious metals is growing.
Central banks accelerate gold purchases, especially after 2008 and Russia’s invasion of Ukraine, which Hawgan associates with fears of depreciation of currencies and withdrawal of reserves. This precious metal has already become the second largest reserve asset, overtaking the euro, the specialist noted.
Similar motifs, he said, are also driven by individual investors who turn to bitcoin as a digital analogue of gold.
Since the beginning of 2024, Bitcoin-ETF has attracted $ 45 billion, while gold ETF-only $ 34 billion, the representative of BitWise said. Hawgan claims that the scale of the first cryptocurrency market does not yet allow the central banks to actively enter it, but the trend is supposedly obvious. Confidence in fiat systems is reduced, the specialist said.
He added that most investors studied in an era when Fiat seemed progress. However, now many are wondering: “What is fiat and why do we consider it stable?” In his opinion, against this background, bitcoin is perceived as a means of protection against monetary risks.
Hawgan emphasized that traditional portfolio strategies based on shares and bonds are completely dependent on fiat, while gold and bitcoin give “rare independence”. According to the expert, the transition to limited forms of money is not a fashion, but a response to growing global risks.
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Source: Cryptocurrency
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