Striking Prediction from Bitwise Analysts: Bitcoin's Fair Value Could Be $219,000! - Coin Bulletin

The increasing global public debt risks have sparked discussions on whether Bitcoin could become more attractive as a hedge against dominant defaults.

Bitwise analysts have suggested that Bitcoin's theoretical value could reach $219,000. This value is based on the assumption that Bitcoin can be used as a "portfolio insurance".

Bitwise analysts said, "The ratio of public debts to GDP has reached record levels. Especially the financial situation in France and the United Kingdom is becoming worrisome for bond investors." It was pointed out that reaching the $36 trillion borrowing limit of the US has raised new concerns about the government's capacity to meet its financial obligations.

Bitcoin and Economic Risks

In the Bitwise report, it is assumed that Bitcoin could reach a theoretical 'fair value' of over 200,000 dollars, considering a 6.2% probability of default for the total 69.1 trillion dollars worth of bonds of G20 countries.

Bitwise Europe Research Director André Dragosch said, "If such a sovereign default scenario occurs, a decentralized asset like Bitcoin could provide an alternative to the traditional banking system. Gold also generally provides good protection against government-related risks, but it is less scarce and more dependent on centralized storage systems compared to Bitcoin."

Disadvantages of Bitcoin: Volatility

However, analysts have pointed out the high volatility of Bitcoin. Bitcoin, which can be subject to sharp price drops during crisis periods, may not provide stability to investors. However, its decentralized structure makes it an attractive option against hyperinflation or currency devaluation.

The Bitwise report stated the following: "Bitcoin's decentralized, counterparty risk-free features and increasing scarcity make it an attractive hedge. However, these features do not eliminate volatility risk."