Matt Hougan has made a career shift from ETFs to cryptocurrencies. He jumped from the traditional fund market to a cryptocurrency index-fund manager, a market he described to Bloomberg as a “generationally significant opportunity with interesting challenges.”
He joins San Francisco-based Bitwise Asset Management as vice president of R&D. He made a splash with his call that cryptocurrencies are on their way to being a multi-trillion dollar market, though he admits to Bloomberg cryptos remain an “early-stage technology” that could be a bumpy road at times.
“The pathway to $1 trillion eventually is fairly certain. How we get there is going to be volatility and uncomfortable. I think we’ll get there pretty soon, though. I wouldn’t be surprised if we ended the year with a cumulated market cap of over $1 trillion. But I wouldn’t be surprised if there were a significant drawdown again before we got there,” Hougan told Bloomberg.
For instance, Hougan suggests the cryptocurrency markets could suffer a 50% drop before attaining a $1 trillion combined market cap. And as the leading digital coins have proven so far in 2018, volatility is the name of the game. “I think for investors the important thing to realize it’s an extremely volatile, high-risk asset. That’s why you have the high potential returns,” he said.
To the naysayers, who could never imagine bitcoin competing with gold or functioning in payments/money transfer, he politely suggests they’re shortsighted and forgetting that “tech increases at an exponential rate.”
Full article:
https://www.ccn.com/bitwise-exec-predicts-trillion-dollar-crypto-market-cap-year/
