- Hougan critiques traditional finance’s inefficiencies and the dollar’s long-term decline as unsustainable for investors.
- He argues crypto offers better speed, yield, and access, already outperforming legacy systems in niche use cases.
- Examples like Yellowcard and Stripe signal how digital assets are evolving into foundational financial infrastructure.
Matt Hougan, Chief Investment Officer at Bitwise, believes the crypto sector has matured into a viable long-term investment platform shaped by growing institutional adoption and real-world utility. In his 100th memo, Hougan reflects on outdated financial systems and defends digital assets against claims that they’re unnecessary.
He references Bloomberg columnist Allison Schrager, a known crypto sceptic, who argues that the US dollar is “pretty great” and questions the value of holding Bitcoin in retirement accounts. Hougan counters that such views remain trapped “between the lines”, unable to imagine a superior solution.
One of the biggest reasons I work in crypto is because I know we can do better.
Hougan notes that checking accounts yield just 0.07%, savings accounts 0.38%, and payment processing can take days. The dollar’s 80% drop in purchasing power in his lifetime, he argues, shows why we should seek alternatives. In contrast, Bitcoin has steadily gained traction as a store of value, with its long-term price chart moving inversely to the dollar’s decline.
Related: SEC Fast‑Tracks, Then Freezes Bitwise’s Crypto Index ETF Conversion
Crypto vs. the Status Quo
He envisions a financial environment where payments are cheap and fast, and assets accrue yield continuously. Crypto networks, in his view, already outperform legacy systems in specific use cases, enabling seamless transfers even on weekends.
We can live in a world where payments are instant, fees are virtually zero, and the government won’t inflate your money away.
Matt Hougan, Bitwise Chief Investment Officer While crypto isn’t yet used to buy groceries, Hougan explains this is normal for any transformative tech. Like the earliest mobile phones or digital cameras, crypto begins where legacy systems fail “on the edges”. He points to Yellowcard’s cross-border services in Africa and Stripe’s US$1.1 billion (AU$1.70 billion) acquisition of Bridge as examples of crypto’s early traction.
Hougan expects crypto to evolve into critical infrastructure for all financial activity. “We don’t have to be satisfied with the status quo,” he concludes. “Things can be much, much better.”
Related: Australian Analyst Says White House Crypto Report Could See Increasing Bitcoin Volatility
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