Bitwise CIO Matt Hougan stated that traditional finance advocates do not understand the true potential of the cryptocurrency sector and that digital assets can improve the financial system.
Matt Hougan, Chief Investment Officer (CIO) of cryptocurrency asset management company Bitwise, expressed that those who defend traditional finance (TradFi) underestimate Bitcoin (BTC), stablecoins, and the cryptocurrency sector in general, thereby missing the revolutionary solutions brought by digital assets. Hougan noted that against the increasingly popular view of 'crypto is not necessary,' the current financial system is actually weak and inefficient.
Citing the views of a columnist at Bloomberg who argued that using Bitcoin in retirement funds is risky and that government currencies like the dollar perform adequately, Hougan expressed that these thoughts are defended by those who cannot envision the financial system of the future.
Pointing out that the current financial system is slow, costly, and inefficient, Hougan stated, 'In the current system, payment transactions take days, banks offer low interest rates, Visa delays payments while earning high profits, and the dollar continuously loses value. Instead, a world is possible where instant payments are made, costs are close to zero, and money does not lose its value.'
The Real-World Impact of Crypto
Hougan also responded to critics who say that crypto has not yet become widespread in everyday transactions. Reminding that technological innovations are always initially adopted in niche areas, the CIO cited examples such as companies in Africa overcoming banking inadequacies with stablecoins, Stripe facilitating global billing processes by acquiring Bridge for $1.1 billion, and figures like Ray Dalio turning to Bitcoin.
Hougan concluded his remarks by stating, 'In the future, most financial activities will be moved to crypto infrastructure. We don't have to settle for traditional systems. There is a better way, and crypto will provide that.'$BNB