In the realm of financial musings, where gentlemen of discernment gather to debate the merits of modern treasures, one Mr. Matt Hougan, Chief Investment Officer of Bitwise Asset Management, has taken it upon himself to defend the much-maligned Bitcoin (BTC) with a zeal that might be considered, by some, as bordering on the absurd. He declares, with a confidence that could only be described as audacious, that the critics who dare to judge this digital darling as a failed repository of value are, in his words, “ignoring the volatile teenage phase” that every nascent monetary asset must endure before it can be deemed mature.
His remarks, delivered with the fervor of a man convinced of his own infallibility, were a direct affront to the growing chorus of naysayers, emboldened by a nearly 50% decline from Bitcoin’s zenith and the recent deluge of headlines questioning its very purpose. One might almost imagine him brandishing a quill, ready to duel with those who dare to doubt his beloved charge.
The Tempestuous Nature of Bitcoin’s Youth
The debate, which had lain dormant like a sleeping dragon, was reignited when the esteemed publication Bloomberg unleashed a report suggesting that the current market downturn was an “existential” crisis for Bitcoin. The audacity of the question posed-what, pray tell, is the purpose of this asset if it fails as a hedge, a payment rail, or a speculative vehicle?-sent shockwaves through the drawing rooms of the financially inclined.
One Mr. Tom Essaye, a former trader of Merrill Lynch, added his own brand of vitriol to the mix, declaring with the finality of a man who has never been proven wrong, that “Bitcoin is not replacing gold, it’s not digital gold,” and dismissing its utility with a wave of his hand. One might almost pity Mr. Hougan, were it not for the amusement his retorts provide.
Undeterred by such barbs, Mr. Hougan countered with the assertion that Bitcoin, in its infancy in 2009, was “100% speculation,” and boldly predicted a future in 2050 where it would be “0% speculation” and held in the coffers of central banks. “You cannot,” he proclaimed with a flourish, “travel from 100% speculation to 0% speculation without ticking every gradient in between. The reason it doesn’t fit any individual box right now is it’s in the uncomfortable middle. But that’s a necessary part of the journey.” One can almost hear the collective sigh of exasperation from his detractors.
“You cannot travel from 100% speculation to 0% speculation without ticking every gradient in between,” Hougan posted. “The reason it doesn’t fit any individual box right now is it’s in the uncomfortable middle. But that’s a necessary part of the journey.”
His defense comes at a most inopportune moment, as the price of this so-called “king cryptocurrency” has taken a most unseemly tumble, shedding thousands of dollars in value following the proclamation of a 10% temporary global tariff by the esteemed U.S. President Donald Trump. One might almost imagine the investors wringing their hands in despair, their patience tested to its very limits.
Meanwhile, the curious phenomenon of Google searches for “Bitcoin is dead” has reached levels not witnessed since the calamitous collapse of FTX in late 2022. Some traders, ever the contrarians, view this as a sign that a bottom may be forming, though whether this is a cause for hope or merely a fool’s errand remains to be seen.
A Historical Parallelogram of Price Fluctuations
Mr. Hougan’s argument, it seems, is rooted in a historical parallel he first expounded upon in a 2018 article for Forbes, which he has now dusted off and recirculated with great fanfare. He points to the performance of gold after the U.S. abandoned the gold standard in 1971, a decision that set the precious metal adrift, subject to the whims of the market as it struggled to establish itself as an independent store of wealth.
Following this decree, gold experienced volatility of the most dramatic sort, rising 73% in 1974 only to plummet 24% the following year. In 1981, it lost a staggering 33% of its value after soaring 121% just two years prior. “If you had asked someone in 1975 if gold was a store of value,” Mr. Hougan implies with a sly wink, “they’d have pointed to that 24% drop.” He argues, with a confidence that borders on the comical, that Bitcoin is following the same trajectory: a rapidly appreciating price that slows over time, accompanied by high-but-declining volatility.
“Either you believe it’s literally impossible to create a digital store of value, or you have to imagine it passing through exactly this teenage state,” insisted the Bitwise CIO.
His framework suggests that the current drawdown, which has seen BTC fall roughly 50% from its October 2025 peak near $126,000, is but a mere blip in the grand scheme of things, a pattern of an asset class maturing rather than failing. Whether this is a tale of triumph or a comedy of errors, only time will tell.
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2026-02-23 23:58