Matt Hougan Advocates Crypto as Superior Financial Infrastructure

• Hougan critiques traditional finances inefficiencies and the dollars 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 In his 100th memo, Hougan reflects on outdated financial systems and defends digital assets against claims that theyre unnecessary.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 dollars 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 dollars decline.

Related: SEC FastTracks, Then Freezes Bitwises Crypto Index ETF Conversion

Advertisement

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 wont inflate your money away.

While crypto isnt 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 Yellowcards cross-border services in Africa and Stripes US$1.1 billion (AU$1.70 billion) acquisition of Bridge as examples of cryptos early traction.

Hougan expects crypto to evolve into critical infrastructure for all financial activity. We dont 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