BITWISE PREDICTED BITCOIN AT $200,000

"When you invest in bitcoin, you are actually making two bets at once: that bitcoin will establish itself as a new store of value, and that governments will abuse fiat currencies and increase demand for stores of value," he wrote.

The market capitalization of the first cryptocurrency is about 7% of gold's $18 trillion figure. If bitcoin "matures" and reaches 50%, its price will soar above $400,000, according to Hougan.

"The second argument: the store of value market is growing because governments are abusing their currencies. If this market triples, and bitcoin simply holds its 7% share, then each BTC will be worth more than $200,000," said the Chief Investment Officer of Bitwise.