BTC Is Worth $2 Trillion Because 'Bitcoin Is A Service,' Says Bitwise's Matt Hougan

Author: Khyathi Dalal | November 19, 2025 10:59am

Bitwise Chief Investment Officer Matt Hougan argues that Bitcoin's (CRYPTO: BTC) value stems from the service it provides, secure, decentralized digital wealth storage, rather than profits or physical utility.

What Happened: in his latest CIO memo, Hougan explained that Bitcoin lets users store wealth digitally without depending on governments, banks, or intermediaries.

Just as Microsoft is valued based on demand for its software, Bitcoin's value scales with demand for its service: non-intermediated, censorship-resistant wealth preservation.

As major players, from Harvard's endowment to sovereign wealth funds and top investors, increasingly seek this service, demand rises, pushing Bitcoin's price higher. Because Bitcoin has no subscription model, accessing its service requires directly owning the asset.

With the world becoming more digital and government debt climbing, Hougan expects long-term demand for Bitcoin to keep accelerating.

Also Read: Why Bitcoin’s Selloff Is ‘Healthy’ According To Coinbase’s John D’Agostino

Why It Matters: In an early November memo, Hougan had referenced macro strategist Jordi Visser's view that Bitcoin is in a "silent IPO" phase, like Facebook or Google when they matured from startup risk to broad institutional adoption.

The current sideways price action, he said, reflects a healthy distribution phase: early holders with massive gains selling into deep institutional demand.

Hougan reiterated his long-term target of $1.3 million per BTC by 2035, calling the current environment a major long-term accumulation window.

He added that professional investors should now consider 5%, not 1%, as the baseline portfolio allocation to Bitcoin.

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Posted In: $BTC