In a seemingly bizarre comment on the state of the crypto industry, Matt Hougan, global head of research at Bitwise asset management has assured his investors – many of whom are presumably heavily invested in crypto – that nearly all cryptocurrencies will die, and that the Bitcoin “bubble” has burst…
In one of the most outwardly bearish comments on the crypto industry since Charlie Munger equated BTC to “trading freshly harvested baby brains”, Hougan explicitly told Forbes:
“There are 2,000 cryptocurrencies out there, 95 percent of them are useless and will die a painful and deserved death.” adding, “The sooner that happens, the better.”
There’s that crypto community spirit!
To be fair, Hougan qualified this seemingly damning sentiment by theorizing that once this mass exodus occurs, important projects will “rise from the ashes,” analogizing this cull with the dotcom bubble of 1999 which birthed Amazon, Google, and Facebook.
“The internet … attracted a huge amount of talent, it attracted a huge amount of capital and it had been very painful for investors … 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.”
Interestingly Hougans sentiment a fairly widely held assumption with many believing that the space will eventually clean itself up.
Sebastian Markowsky Director of GP Bullhound, authored a report in May of last year, on this exact theory, prophesying that a “heavy correction” could lead to the mass wipe-out of cryptocurrencies; continuing to state that the fallout of this would set the wheat from the chaff and that survivors growth potential would be “unprecedented”.
Read more: Report: Cryptocurrencies could see 90% correction within the next 12 months;
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