Bitwise CIO bats for diversified crypto funding, compares Bitcoin to Google

Bitwise CIO makes a case for diversified crypto funding in several belongings similar to Bitcoin, Ethereum, Solana, and Avalanche.
He compares it to 2004, when Google was the main web firm, although Netflix made essentially the most cash for buyers in a 21-year interval.
He equates Blockchain to the web, saying the expertise can be utilized for completely different 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 necessary asset. 

Hougan mentioned that whereas “Bitcoin is the king of crypto assets”, citing that it’s the largest cryptocurrency, whereas having essentially the most liquidity and being well-known.

He says Bitcoin is the one digital asset that has a shot at being an necessary international forex. He mentioned the asset is comparable to digital gold. 

Bitwise’s CIO mentioned that regardless of the necessary standing of Bitcoin, it’s smart to spend money on different cryptocurrencies, making a comparability with the historic efficiency of web corporations. 

Google and Netflix

Hougan asks the buyers to put themselves in 2004. 

Google was the main web firm then, and buyers would have been tempted to put cash into Google as it’s the “dominant player”, Hougan mentioned. 

He factors out that whereas Google has finished exceptionally nicely within the subsequent 21 years, gaining over 6300%, investing in different web corporations would have served buyers nicely, because the web is a “general purpose technology” with makes use of in retail, social media, and software program.

Investing in corporations similar to Netflix, Amazon, and Salesforce, that are main gamers in different verticals of the web, would additionally go on to pay enormous good points for buyers. 

Netflix is the very best performing inventory on this interval with good points of over 50,000%. 

Amazon and Salesforce additionally rack up 10,000% and seven,000% good points, respectively, leaving Google because the worst-performing inventory amongst this group throughout this time. 

Blockchain is comparable to the Internet

Hougan compares Blockchain expertise to the web, saying the previous can be a general-purpose expertise with completely different crypto belongings used for completely different 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 can construct new kinds of purposes (DeFi, DePin) or middleware that providers different blockchains (Chainlink). 

You can even construct conventional companies that help the crypto economic system (Coinbase, Circle, Marathon Digital)”, Hougan writes.

Power of passive investing

It is now a daily prevalence that passive funds are trumping actively managed funds. 

Hougan factors this pattern out.

“Over the past 20 years, actively managed US equity funds have underperformed their benchmark indexes 97% of the time”, he mentioned. 

It is necessary to spend money on the large image relatively than selecting winners, Hougan writes. 

He provides that after learning historical past, it is sensible to personal a basket of cryptocurrencies similar to Bitcoin, Ethereum, Solana, and Chainlink. 

In the final 4 years, completely different crypto belongings emerged because the primary performer in several years.

Hougan demonstrates this with knowledge. He factors out that it’s unimaginable to predict cryptocurrency winners in 2030. 

The case for crypto indexing in 10 sentences—and two charts.

Say it’s 2004. You know the web goes to be massive. Search is its killer app, and Google is king.

If you’d invested in Google, your cash would have grown 64x since then. Smart transfer.

But the web turned out… pic.twitter.com/EvIrsnAVl9

— Bitwise (@BitwiseInvest) May 13, 2025