Matt Hougan aligns himself with Balaji Srinivasan: "Bitcoin is technologically superior to gold"

Matt Hougan, CIO of Bitwise, supports Balaji Srinivasan's thesis on the technical superiority of Bitcoin over gold, highlighting the importance of self-custody.

In his market analysis, Hougan points out that gold remains a pillar of the traditional financial system, but it is dragging down physical, logistical and custody limitations that a global digital network —like Bitcoin— can address more efficiently.

Bitwise's investment director highlights the strength of the cryptocurrency created by Satoshi Nakamoto It is based on two central axes: self-custody y almost immediate liquidation capacityFor investors who distrust intermediaries, the ability to maintain direct control over their assets reduces counterparty risks and adds a layer of security that is difficult to replicate with gold bars stored in vaults or with certificates backed by third parties. 

At the same time, Hougan emphasizes that the Bitcoin network allows move value on a global scale without depending on market hours, physical transport or banking infrastructure, which improves its practical utility compared to gold, especially in contexts of financial stress.

From gold to code: Bitcoin, the new safe haven in the digital age

The original publication by American businessman and investor Balaji Srinivasan, which has served as a catalyst for this debate, presents a stark scenario. In his view, "The golden age is over". 

Srinivasan argues that the world faces a fiat system crisis where physical gold, although valuable, presents critical vulnerabilities in the 21st centuryTheir main argument is resistance to seizure. While gold can be traced, banned, or confiscated by states in crisis—recalling the precedent of Roosevelt in 1933 or the recent restrictions in Russia—, Bitcoin offers an "invisible, international and instant" alternative.

In her publicationSrinivasan emphasized that:

“Unlike physical gold, digital gold [Bitcoin] (and cryptocurrencies in general) can be securely bought, sold, sent, and received anytime, anywhere, in any amount. It is invisible, international, instantaneous, and internet-native. And it is transportable, programmable, and easily verifiable in ways that bricks of gold simply are not.”

Hougan, echoing this sentiment strongly within the institutional sector, points out that he agrees with this, regarding Bitcoin's technical superiority over gold, which is not an abstract concept, but a practical function derived from settlement. 

In the traditional system, moving large quantities of gold requires logistics, physical security, and trust in third parties. Bitcoin, on the other hand, allows value to be moved and stored natively on the internet, eliminating the intermediary and giving individuals complete control over their assets. It is this efficiency that, according to the Bitwise expert, guarantees that Bitcoin will ultimately be "significantly larger than gold."

A refuge from the sovereign debt crisis

The analysis shared by both experts goes beyond technical comparisons; it delves into the geopolitics of scarcity. Srinivasan argues that we are in a transition where the "American Empire" is being challenged on two fronts: China and the internet. While the Asian giant is betting on standardizing its economy around gold and physical commodities that it can control, the global network is shifting toward digital assets that it can encrypt and verify. In this scenario, the investor's physical location becomes as critical as their asset allocation.

Hougan, for his part, has emphasized in various speeches that Bitcoin's growth depends not only on accelerated adoption but also on the continued printing of money and the devaluation of traditional currencies. With gold trading at all-time highs above $5.000, the Bitwise CIO observes that the market is already reflecting an erosion of institutional trust. However, he considers Bitcoin to be an improved version of that same protective instinct. The ability to perform "self-custody through on-chain settlement" is, in Hougan's view, the service the world truly demands in an era of sovereign debt crises.

The consolidation of a new financial standard

In a context of growing government debt and a loss of confidence in traditional fiat currencies, Bitcoin has become an asset that many see as a hedge against the fragility of the financial system, despite the volatility of its price in the short term. The reality is that its decentralized nature, limited offer to 21 million units and its political independence This has led to it being compared to gold, that historic symbol of stable value. 

However, experts Hougan and Srinivasan warn that Bitcoin's importance goes beyond mere comparison. In their view, it is not a complement to gold, but a logical step in the evolution of money in the digital age.

In short, while gold relies on its physical scarcity and historical legacy, Bitcoin is sustained by the transparency of technological consensus and the security of cryptography. Its instant portability and ease of global verification give it an advantage that the precious metal itself cannot offer. Therefore, rather than simply replicating the virtues of gold, Bitcoin redefines the very concept of a store of value in an increasingly interconnected and digital world.