$1 Million Bitcoin Isn't A Far-Fetched Idea: Bitwise Says

""$1 million sounded absurd-even to me," Hougan wrote. "I no longer see it that way." Hougan framed BTC as an emerging store-of-value asset that increasingly competes with gold. In that context, estimating bitcoin's potential value becomes a matter of calculating the total size of the store-of-value market, estimating bitcoin's share of that market, and dividing the result by the asset's fixed supply of 21 million coins."

"By Hougan's estimates, the global store-of-value market today stands at just under $38 trillion, consisting largely of gold and BTC. Gold accounts for roughly $36 trillion of that figure, while bitcoin represents about $1.4 trillion, or slightly less than 4% of the market."

"Many analysts rely on "static math" when thinking about bitcoin's long-term price potential. According to Hougan, that approach ignores the fact that the market bitcoin competes in - the global store-of-value market - has expanded at a rapid pace for decades."

Bitwise Asset Management's chief investment officer Matt Hougan argues that bitcoin reaching $1 million is achievable when analyzed through proper valuation frameworks rather than static mathematics. The key insight involves recognizing that bitcoin competes in the global store-of-value market alongside gold, which has expanded significantly over decades. Currently, this market totals approximately $38 trillion, with gold comprising roughly $36 trillion and bitcoin about $1.4 trillion. Hougan projects the store-of-value market will grow to $121 trillion within ten years. At that projected size, bitcoin would only need to capture 17% market share to reach $1 million per coin, given its fixed supply of 21 million coins. This framework recontextualizes what appears as an unrealistic price target into a mathematically plausible scenario based on market expansion and competitive positioning.

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