Bitwise’s CIO Matt Hougan: Now Is the Best Time to Buy Bitcoin — Here Is Why
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Matt Hougan, Bitwise’s chief investment officer, believes now is the best time to buy Bitcoin. He points to the decrease in risk as the main reason for his belief. He further explains that even compared to 2010, today’s crypto market presents a better scenario for purchasing Bitcoin. As he puts it, purchasing Bitcoin in 2010 was like buying a lottery ticket, as it presented huge profits and risks. As such, anyone who invested in Bitcoin then was taking a much bigger risk for a much bigger reward.
2025 the Best Time to Invest in Bitcoin
He mentioned the recent advances in the adoption and legitimacy of Bitcoin as the reason for the decreasing risk. For instance, Trump’s executive order, which was signed in early March, created the Strategic Bitcoin Reserve. Additionally, now there are also Bitcoin ETFs available, which have brought in major capital, showing institutional confidence. Lastly, the accessibility of trustworthy and reputable crypto exchanges was also mentioned, making it safe and low-risk to invest. He then stated that this makes today the best time in history to purchase and invest in Bitcoin.
Early Bitcoin Investors Risked It All: Exchanges in 2011
Bitwise Matt Hougan explained some of the challenges that early Bitcoin investors had to go through in order to buy BTC. As digital assets were a new and unknown concept back then, to purchase Bitcoin, you had to use shady websites. He gave an example and named New Liberty Financial as one of the leading exchanges back then. Based on his explanation, this platform exchanged currencies through PayPal and used a Gmail address. Additionally, the owner of this website called the services a personal hobby, as you can see in Image 1.
Image 1 – Provided by Wayback machine, published on web.archive.org, March 27, 2025.
The Bitwise CIO also used a personal story to drive his point and support his argument. Based on his retelling in 2011, a colleague had urged him to buy Bitcoin, but he had decided against it. If he had bought $11,000 worth of Bitcoin back then, he would have around $88 million today. However, he explained that it is easy now to tell him that he should have bought Bitcoin. But back then, you were not just buying Bitcoin; you were Paypaling $1,000 to an unknown person. Additionally, with the regulatory and cybersecurity risks, Bircoin investment risks were very high.
No More Risks: Why Bitcoin Is Now a Safe Investment,
Based on Bitwise Matt Hougan’s article, there are no major Bitcoin investment risks now. The first external risk was transferring and holding Bitcoin, that have been answered by safe exchanges and custody solutions. The second risk was the possibility that the US government would ban digital assets or Bitcoin alone. This risk has also been rectified as there is a Strategic Bitcoin Reserve in the US. Third was the lack of institutional capital and investment in Bitcoin, which was also rectified in 2024 when Bitcoin ETFs emerged.
Why Investors Are Increasing Their Bitcoin Holdings
This market expert further highlighted the importance of the Strategic Bitcoin Reserve. He believes that this administration sees Bitcoin as the “best backup plan on the market”. In his opinion, this establishes that the US government now does not consider Bitcoin as a competitor to the US Dollar. As such, the US government now has a backup currency if the fiat system and the dollar lose their value. Based on his article, since Trump signed this executive order, investors have recognised the change in the risk versus reward ratio. As such, many investors have increased their position by 1% to 3%.
The post Bitwise’s CIO Matt Hougan: Now Is the Best Time to Buy Bitcoin — Here Is Why appeared first on Coinfomania.
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