Bitcoin reaching $1 million per coin often sounds unrealistic to investors, but multi-billion dollar asset manager chief investment officer (CIO) Matt Hougan says the skepticism usually stems from a basic misunderstanding about how the asset should be valued.

In a memo released Tuesday, the CIO of Bitwise Asset Management argued that many analysts rely on “static math” when thinking about bitcoin’s long-term price potential. According to Hougan, that approach ignores the fact that the market bitcoin competes in — the global store-of-value market — has expanded at a rapid pace for decades.

Hougan wrote that a lot of people hear $1 million and immediately dismiss it, noting…

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