🧑💼 Bitwise Investment Director Hougan recalled that in 1971, the United States abandoned the gold standard, that is, stopped exchanging dollars for gold at the request of other central banks. Hougan said that, as a finance specialist, he has worked all his life in a world based on fiat money. In this world, the country's money supply is created not on the basis of accumulated reserves, such as gold or silver, but on what the government chooses. The Bitwise top manager believes that more and more people are beginning to understand that the era of fiat money is becoming an anomaly.
❗According to the observations of the Bitwise Investment Director, private investors are already aware of the risks of uncontrolled money printing by central banks, so more and more people are buying bitcoin, considering it a "digital alternative to gold." The expert noted that Bitcoin exchange-traded funds (ETFs) have already attracted $45 billion in capital, which exceeds the $34 billion that has flowed into gold-linked ETFs since January 2024.
“When most of us were in school, the advent of fiat money seemed like an inevitable progression, like crawling out of the mud. People thought gold was money, and we laughed. Maybe printing money out of thin air, as we did in 1971, is actually crazy. Sound money needs limits,” Hougan said, hinting at Bitcoin’s limited supply of 21 million coins.
