Institutional Investors Seek ‘Non-Debt Money’
Matt Hougan, Chief Investment Officer of crypto fund manager Bitwise, has revealed that large investors are increasingly turning to Bitcoin (BTC) to mitigate risks posed by economic challenges.
Concerns over Inflation and Debt
Institutions are expressing concerns about persistent inflation and the US government’s rapid debt accumulation. Hougan explains that Bitcoin is being seen as a hedge against these risks.
Bitcoin as a Non-Debt Asset
Hougan emphasizes that Bitcoin is one of the few assets not backed by debt. He believes that investors are realizing the importance of holding “non-debt money” to diversify their portfolios.
Gold and Bitcoin: Complementary Assets
Hougan acknowledges that both gold and Bitcoin provide a way to store money outside centralized institutions. However, he notes that Bitcoin has more upside potential due to its emerging nature.
Different Roles, Similar Purpose
Gold is a mature asset, while Bitcoin is a newer store of value. Despite their differences, both assets offer investors a way to exit the fiat currency system and hold non-debt money.
