Bitwise: bitcoin turned Out to be a "total bubble" and 95% of crypto will " die

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The bullish bitcoin market was a bubble that burst in 2018, but the painful event had great potential: it attracted a lot of money and talent to the growing industry. This is how Matt Hogan, the head of the global research company Bitwise and the Creator of The world's first index cryptocurrency Fund, estimates.

"It was a huge leap and a huge return,' said Hogan in the podcast Barry Ritholz from Bloomberg, adding It was a total bubble."

While financial "bubbles" understandably carry a negative connotation, Hogan believes that the bitcoin bubble fueled a huge media interest in the blockchain and cryptocurrency market. Moreover, the rapid rise in cryptocurrency prices has gathered a huge potential of talented professionals in the industry, which otherwise might not have benefited if not for the impressive daily headlines in 2017.

Study Of Matt Hogan

Hogan has in mind that the bubble in the bitcoin market is no different from the dot-com bubble of 1996-2001, which provided similar collateral benefits for the emerging technology industry at the time:

He did the same thing that happened to the Internet, that is, attracted a huge amount of talent. This brought a lot of capital and interest in the development of the ecosystem. So I think that's going to be an interesting thing. But Yes, it was a difficult year in 2018. I think [bitcoin] is the next dotcom. Remember, the dotcom bubble created Pets.com but he also created Amazon.

Hogan also says that 95% of existing cryptocurrencies will "die out" - and this is good for the market. He explains his position as follows:

There are 2'000 cryptocurrencies; 95% of them are useless and will die a painful death. The sooner that happens, the better. But this "ash" will be important. Just like from the ashes of the dot-com appeared Amazon, Google, Facebook, etc.

In fact, Hogan says that it is important for the crypto market to eliminate all fictitious virtual currencies so that worthy ones can survive and thrive.

Bitcoin - the new gold for the Millennials

Hogan believes that bitcoin is a version of gold for the generation born from 1981 to 1996. He pointed to recent surveys showing that Millennials have a favorable view of cryptocurrencies compared to baby boomers (people born between 1946 and 1964).

Hogan said the decentralized nature of the cryptocurrency is particularly appealing to the younger generation:

Every generation has their favorite asset or way to get the fame they love. The great generation loves gold, then people love active mutual funds. Gen X was loved by hedge funds. Millennials love crypto.

Hogan's optimistic view of Millennials contrasts sharply with the opinion of CNBC analyst Scott Nations, who says that "Millennials are too stupid to understand that bitcoin is a bubble to be avoided like the plague."

Without losing perspective

As for the wild daily price fluctuations in the crypto market, Hogan noted that such well-known corporate giants as Amazon, Apple and GE, withstood the huge fluctuations of the stock market, rising to its top. Accordingly, he does not pay too much attention to the constant statements of the media that bitcoin is dead.

Read on: Bitcoin died 90 times in 2018

Hogan says all these cyclical fluctuations are part of the process, so everyone just needs to calm down.

In the past, bitcoin has experienced six or seven, 70 percent drawdowns. And each of them has prepared the ground for a new growth. I'm not saying it's going to happen again, but it's important.

Institutional investment coming

As a bitcoin bull, Mike Novogratz, Matt Hogan is confident that institutional money will eventually reach the market; and it is only a matter of time.

Read on: Fidelity: storage and trading Desk for crypto on " final testing»

To support this claim, Hogan noted that Fidelity is building its blockchain to facilitate mass crypto adoption:

Fidelity employs up to 150 people to enable institutional investors to buy cryptocurrency and store it in a company they trust.

"Last year we talked to 2'000 institutional and financial consultants. There is a huge interest in crypto.",- concluded Hogan.

Link - https://altstake.io/news/bitwisebitkoin-okazalsya-totalynym-puzyrem-i-95-kriptoumret-boleznennoy-smertyyu