Bitcoin is a good option but it is also convenient to “diversify,” says Bitwise’s CIO

Matt Hougan, cio de Bitwise, compare to Bitcoin with Google for 2004, and suggests a wide crypto investment strategy in which you invite you to consider “All the panorama” referring to certain altcoins.

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• Bitcoin It is the “king”, but Ethereum And others have unique roles in the ecosystem
  
• Bitwise He argues that Blockchain It is a general purpose technology as the Internet
  
• Diversifying can be key if you bet on the future of Ochain assets

The dominant narrative in the current crypto market cycle is usually focused on Bitcoin, promoted by the approval of quoted funds (ETF) and an intense accumulation by large corporations. However, Matt Hougan, Investment Director of Bitwise, maintains that focus exclusively on BTC It would be like having invested only in Google In 2004. Your recommendation: look beyond and consider a diversified portfolio of cryptoactive.

The argument of “Google of 2004 “ applied to Bitcoin

Hougan’s statements were raised in a note aimed at the entity’s clients, reviewed by the medium The block, where he shared some considerations regarding the current panorama of the crypto market.

To explain your central idea, the manager of Bitwise traces a parallel between the main digital currency and Google: “Bitcoin is the king of cryptoactive: the largest, liquid and established. It is like digital gold, and the only one with real possibility of becoming a coin of global importance.”

But, add, That does not mean that investors must ignore other opportunities. Mentions the recent rebound of Ethereum —A 40% in a single week – as an example of how other cryptocurrencies are earning traction.

The Executive remembers how in 2004, invest only in Google It seemed sensible, since it dominated internet searches after the collapse of “.Com.” Even so, those who also bet on Amazon, Netflix and Salesforce, Diversifying in leaders of other verticals, they obtained better long -term yields. For example, you have the case of Netflix, then underestimated by the existence of physical stores of Blockbuster, It ended up being the highest growth.

Ethereum, layers 2 and emerging narratives

The climb of Ethereum It is no accident. In fact, a report published by analysts of Bernstein He states that there are three key reasons behind the upward movement: the rise of the stablecoins and the token, the institutionalization of Capa 2 solutions, and the closure of short positions as the narratives move away from the mere use as a value reserve.

Hougan adds that the impulse also comes from the success of the update Pectra in Ethereum and a general change towards higher risk assets in markets.

This resurgence has made many wonder if it is time to diversify beyond Bitcoin, Thesis that Hougan supported in his appreciations on the crypto market.

Blockchain as general purpose technology

Like the Internet, Hougan considers that Blockchain It is a general purpose technology – a base layer on which you can build virtually anything. Some networks, such as Bitcoin, They are designed to be “Best money ”. Others, like Ethereum, Solana either Avalanche, They allow programmable networks that move active real world.

In addition, he mentions other components of the ecosystem such as Chainlink, which serves as “Middleware “ (intermediate layer between applications and the operating system), or traditional companies such as Coinbase, Circle and Digital Marathonwhich strengthen general infrastructure.

In his opinion, as happened with the Internet in their early stages, all possible applications of Blockchain. Therefore, the investment returns of each protocol vary significantly according to their role within the system.

What will be the great winner at 2030?

“What will be the one that best works here at 2030? Good question,” Hougan states, highlighting the difficulty of anticipating clear winners in a field as dynamic as the crypto.

His advice is not obsessed with choosing the next champion. “Do not worry about choosing winners; they invest in the general vision”recommends. He points out that 97% of the variable rental funds actively managed in the US. They have had worse performance than their reference rates during the last 20 years.

Applied to cryptospace, where changes are rapid and technologies are still being defined, that statistic becomes even more relevant.

Bitcoin As the only option or part of something broader?

Hougan does not rule out that, for some, Bitcoin Be enough. If the purpose of investing in cryptocurrencies is to cover itself against the devaluation of fiduciary money, BTC It is clearly the best bet, he said.

But it is believed that Blockchain will transform the global asset infrastructure, then a diversified portfolio – with Bitcoin, Ethereum, Solana, Chainlink And others – makes more sense.

In summary, the debate between specialization and diversification moves to the crypto world. And as in 2004 with the Internet, the most wise is not to bet on a single player, but to participate in the broader ecosystem of innovations.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

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