“The bitcoin bubble has burst and 95% of the 2,000 cryptocurrencies that exist today will die a painful and deserved death.”
These are the words of Matt Hougan – a global head of research at Bitwise Asset Management.
Hougan also holds the position of the Chairman of Inside ETFs, the world’s largest ETF conference, and is a board member of EquBot, as well as an adviser at StratiFi.
Recently, Vinny Lingham tweeted that “crypto winter will become crypto nuclear winter”, in case BTC breaks below $3,000. Lingham is the CEO of Civic.
Newconomy covered multiple stories in which Jamie Dimon, the CEO of banking giant J.P. Morgan, described Bitcoin as a “fraud”, while trading bitcoin was regarded as “stupid” and that cryptocurrency will ultimately “blow up”.
This time, Hougan was speaking to Barry Ritholtz, the host of Bloomberg’s “Masters in Business” podcast.
“It was a massive run-up and a massive pullback. (It was a) total bubble. There are 2,000 cryptocurrencies out there; 95 percent of them are useless and will die a painful death. The sooner that happens, the better,” said Hougan.
However, not everything connected to crypto and blockchain is doom and gloom for Hougan.
“From those ashes, I think will emerge important things. Just like from the dotcom ashes emerged Amazon, Google, Facebook. The internet … attracted a huge amount of talent, it attracted a huge amount of capital and it had been very painful for investors. The people who jumped on blindly when it already moved aggressively and also volatile highly moving assets encouraged bad behavioral responses as well as bad activity. But it did bring a lot of capital and interest in development to the ecosystem. So, I do think interesting things will be born from that. But it was a difficult year in 2018,” added Hougan.
The “dotcom bubble”, to which Hougan refers, was a rapid growth recorded in the US stock market in the 1990s, led by Internet-based companies. For instance, Nasdaq went from 1,000 to more than 5,000 between in five years only (1995 – 2000).