Bitwise: You Should Bet on the Cryptosystem as a Whole, Not on Bitcoin

Bitwise investment director Matt Hougan said that while Bitcoin remains the leading asset in the crypto market, investors should consider the potential of other blockchains, especially after Ethereum's recent 37% jump following the Pectra upgrade, which has increased interest in alternative digital assets.

According to Hougan’s analysis, the recovery in Ethereum (ETH) prices is not a coincidence. It is linked to the network’s technological advances and investors’ general appetite for high-risk, high-reward assets. He compared the current state of the crypto market to the internet market in 2004, when Google’s dominance did not prevent companies like Amazon and Netflix from posting record profits.

“Bitcoin is the king of liquidity and capitalization, but blockchain is not just about money. It is a universal platform for DeFi, tokenized assets, and new business models,” he noted.

According to the expert, if an investor believes that blockchain is capable of changing not only finance but also other industries, then ignoring altcoins means missing out on opportunities.

“By 2030, we won’t know for sure which asset will be the best performer. So it’s better to bet on the entire ecosystem than to try to guess the winners,” Hougan said.

In his opinion, BTC is suitable for those who view cryptocurrency as a hedge against inflation or an analogy to gold. For such investors, diversification may be excessive. However, if the goal is to participate in the growth of the entire technology, spreading capital across several projects becomes a reasonable tactic.

“Not everyone will win, but the market as a whole will,” he added.

Hougan also noted that actively managed funds underperform indices 97% of the time, a pattern that is especially relevant in the crypto industry.