- Bitwise CIO makes a case for diversified crypto funding in numerous belongings equivalent to Bitcoin, Ethereum, Solana, and Avalanche.
- He compares it to 2004, when Google was the main web firm, although Netflix made probably the most cash for traders in a 21-year interval.
- He equates Blockchain to the web, saying the expertise can be utilized for various functions, just like the web.
Bitwise CIO Matt Hougan makes the case for diversified crypto funding, at the same time as he hails Bitcoin as an essential asset.
Hougan mentioned that whereas “Bitcoin is the king of crypto assets”, citing that it’s the largest cryptocurrency, whereas having probably the most liquidity and being well-known.
He says Bitcoin is the one digital asset that has a shot at being an essential international foreign money. He mentioned the asset is much like digital gold.
Bitwise’s CIO mentioned that regardless of the essential standing of Bitcoin, it’s clever to put money into different cryptocurrencies, making a comparability with the historic efficiency of web corporations.
Google and Netflix
Hougan asks the traders to place themselves in 2004.
Google was the main web firm then, and traders would have been tempted to place cash into Google as it’s the “dominant player”, Hougan mentioned.
He factors out that whereas Google has accomplished exceptionally properly within the subsequent 21 years, gaining over 6300%, investing in different web corporations would have served traders properly, because the web is a “general purpose technology” with makes use of in retail, social media, and software program.
Investing in corporations equivalent to Netflix, Amazon, and Salesforce, that are main gamers in different verticals of the web, would additionally go on to pay big positive factors for traders.
Netflix is the very best performing inventory on this interval with positive factors of over 50,000%.
Amazon and Salesforce additionally rack up 10,000% and seven,000% positive factors, respectively, leaving Google because the worst-performing inventory amongst this group throughout this time.
Blockchain is much like the Web
Hougan compares Blockchain expertise to the web, saying the previous can be a general-purpose expertise with totally different crypto belongings used for various functions.
“You can use a blockchain to create a better form of money (Bitcoin) or to create a programmable network for transferring real-world assets” (Ethereum, Solana, Avalanche).
You possibly can construct new varieties of purposes (DeFi, DePin) or middleware that providers different blockchains (Chainlink).
It’s also possible to construct conventional companies that help the crypto economic system (Coinbase, Circle, Marathon Digital)”, Hougan writes.
Energy of passive investing
It’s now a daily incidence that passive funds are trumping actively managed funds.
Hougan factors this development out.
“Over the past 20 years, actively managed US equity funds have underperformed their benchmark indexes 97% of the time”, he mentioned.
You will need to put money into the large image quite than selecting winners, Hougan writes.
He provides that after finding out historical past, it is smart to personal a basket of cryptocurrencies equivalent to Bitcoin, Ethereum, Solana, and Chainlink.
Within the final 4 years, totally different crypto belongings emerged because the primary performer in numerous years.
Hougan demonstrates this with knowledge. He factors out that it’s unattainable to foretell cryptocurrency winners in 2030.
The case for crypto indexing in 10 sentences—and two charts.
Say it’s 2004. You understand the web goes to be large. Search is its killer app, and Google is king.
For those who’d invested in Google, your cash would have grown 64x since then. Good transfer.
However the web turned out… pic.twitter.com/EvIrsnAVl9
— Bitwise (@BitwiseInvest) Could 13, 2025