Bitwise: BTC fair value could be $224K if used as sovereign debt hedge

Bitwise has calculated a theoretical fair value for BTC of approximately $224,000 under the assumption that it is adopted as portfolio insurance against the risk of sovereign debt defaults, CoinDesk reported. In a monthly research report, the firm's European business unit explained that the analysis is based on a model by Greg Foss, which views BTC as an asset similar to a credit default swap (CDS) on national government bonds. Bitwise emphasized that the figure is a model-based illustrative calculation, not a price target or forecast. The model considers BTC a hedge against the default risk of major nations because it lacks a central issuer or a state-backed payment guarantee. The $224,000 valuation was calculated based on the weighted average default probability of G20 countries and the size of the government bond market assumed to be insured.