Bitcoin's recent volatility has sparked both curiosity and concern, with proponents arguing that its unique blend of technology and currency will drive long-term growth.

Roundtable anchor, Rob Nelson, led a discussion with Matt Hougan, Chief Investment Officer at Bitwise, to unpack bitcoin’s price fluctuations and its trajectory.

Hougan addressed the root of bitcoin's volatility, explaining, "You have to accept reality as it is. Go back to the first day bitcoin existed — its probability of success was extraordinarily low, of course it was volatile." He emphasized that bitcoin's volatility has significantly decreased since inception, noting, "Fast forward 30 years, when everyone accepts bitcoin, it’s going to be less volatile than gold because it’s used for commerce." Hougan argued that the current fluctuations are part of a necessary transition as bitcoin matures.

Nelson highlighted a practical perspective for younger investors, saying, "I tell my young nephews, don’t worry about the volatility now. In 30 years, you’ll be really happy." He likened bitcoin to other revolutionary assets, adding, "Bitcoin isn’t just a currency or a technology — it’s both. That makes it unique, and I don’t know anything else like it."

When asked about bitcoin's potential value in the coming year, Matt Hougan shared a bold prediction, stating, "The bitcoin network will produce about 170,000 bitcoin this year, but demand from ETFs, corporations, and governments will far outstrip that supply." He explained that such demand could drive prices past natural sell points, saying, "If we push through the $100,000 level [again] the next behavioral sell wall could be at $200,000 or $250,000." Hougan maintained that while these are predictions, they are grounded in supply and demand dynamics.

Nelson reflected on the broader implications of bitcoin's scarcity, calling it "the only finite asset of its kind." He expressed confidence in its long-term value, sharing, "People tell me million-dollar bitcoin, and I can see that. I don’t know when, but I believe it’s inevitable." His remarks underscored the unique characteristics that make bitcoin a compelling investment.

Hougan concluded by emphasizing bitcoin's transformative potential, stating, "By the time bitcoin is as boring as gold, the returns will be a few percent a year. Right now, the volatility is your opportunity." He framed the current period as a pivotal moment for investors willing to weather the storm.