Matt Hougan, the chief investment officer of the cryptocurrency firm Bitwise Asset Management, is upbeat about the future of the markets for digital assets.
Hougan claims to be “epically optimistic for the next three years” in a recent interview on The Wolf of All Streets YouTube channel.
Hougan predicts that the next bull cycle for the cryptocurrency markets will be historic.”This four-year bull market cycle will be the most extensive regarding user acceptance, aggregate market cap growth, and practically all other factors that matter to us. There will be some deviation from straight up and to the right. There will undoubtedly be hiccups. Finally, we can discuss regulation, and I honestly think regulation is a good thing.
But if you’re a member of the development community, you can see and feel what’s going on. In my experience of the cryptocurrency market, the degree of enthusiasm is higher than it has ever been.
We are up 50% this year. As a result, I believe. And for that reason, I anticipate that by year’s end, we will close higher. Moreover, I think 2024 and 2025 will be much better. The CIO of Bitwise Asset Management said that every crypto cycle and the future one would be no different, driven by a technical advance.
“Such cycles have a purpose, a significant technical advance that sparks a new bull market…
I’m thrilled because I know what technical innovation will lead to the next bull market. And it’s bigger than stablecoins, NFT [non-fungible token], and DeFi [decentralized finance]. And, in my opinion, more significant in terms of real-world use than even the beginnings of Bitcoin and Ethereum.
Scalability is what it is. This period is layer-2. Whenever you look at cryptocurrency, people have long questioned when it would become widely used. Not till this year, I believe.
It failed when it attempted to become widespread in 2020. With Ethereum, a transaction now costs up to $200. If a trade costs $200, you cannot become mainstream.
But, considering how quickly blockchain technology develops, the transaction charge has decreased from around $3 to $1.50. That may now be $0.12 or such. It will be a fraction of a cent at the end of this year on Ethereum after [Ethereum Enhancement Proposal]-4844.
And the things you can do when using a blockchain is essentially free are fascinating and thrilling. It makes it possible to enter the mainstream in such a significant way that, in my opinion, this three-year cycle is when crypto genuinely enters the mainstream.
