The crypto market has been a subject of fascination for many years, and its popularity has only continued to grow in recent times. The chief investment officer of Bitwise Asset Management, Matt Hougan, is one of many experts who are bullish on the future of digital assets, and he has shared his thoughts on the market’s next few years.
In a recent interview on The Wolf of All Streets YouTube channel, Hougan expressed his optimism, stating that he is “epically bullish on the next three years.” He believes that the upcoming bull cycle for crypto will be unprecedented and that it will be driven by a major technological breakthrough, which he identifies as scalability through layer-2 epoch.
Hougan’s excitement is based on the progress in blockchain technology and the scalability breakthrough, which he believes will enable mainstream adoption of crypto. According to him, the scalability breakthrough will allow blockchain technology to go mainstream in a major way, and the things that can be done when it’s effectively free to use a blockchain are so interesting and exciting.
The previous bull cycles in the crypto market were driven by major technological breakthroughs, and the upcoming one will be no exception. As Hougan notes, “Those cycles happen for a reason, which is there’s a major technological breakthrough that drives a new bull market.”
Regulation has been a subject of concern for many people in the crypto market, but Hougan believes that it will actually be beneficial for the market. He notes that regulation will provide clarity and stability for investors, which will help to bring more people into the market. Additionally, he believes that the excitement in the developer community will continue to drive progress and innovation in the industry.
The pace of progress in blockchain technology has been impressive, and Hougan notes that the fee to do a transaction has gone down significantly. He states, “If you think about how it tried to go mainstream in 2020, it broke, right? The cost of a transaction on Ethereum hit $200. You can’t go mainstream if it costs $200 to do a transaction.” However, the scalability breakthrough will enable transactions to be done at a fraction of a penny, which will make it much more accessible to the general public.
Hougan believes that the scalability breakthrough will enable crypto to penetrate the mainstream and that this upcoming three-year cycle will be the one where it happens. He notes that “the things you can do when it’s effectively free to use a blockchain are so interesting and so exciting.”
In conclusion, the crypto market is poised for an exciting few years, and experts like Matt Hougan are optimistic about what the future holds. The scalability breakthrough through layer-2 epoch is expected to enable mainstream adoption of crypto, and the excitement in the developer community is expected to continue driving progress and innovation in the industry. As always, there will be bumps along the way, but the future looks bright for digital assets.