Bitwise Exec: 95% of Cryptocurrencies Will die a Painful Death

A leading executive at digital asset investment firm Bitwise Asset Management said on Tuesday that the overwhelming majority of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term would disappear in the near future.

Speaking on a Bloomberg podcast, Matt Hougan, Global Head of Research at the firm, said that 95 percent of cryptocurrencies are going to fail.

"95 percent of [cryptocurrencies on the market]," said Hougan, "will die a painful and deserved death."

But it's not all doom and gloom in the world of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term.

Hougan also said that Bitwise plans on taking advantage of those failing firms.

Prior to joining the asset management firm, Hougan worked heavily on exchange-traded funds (ETFs).

In fact, working for ETF.com, the Bitwise executive saw ETFs rise from being something of a new idea to being a multi-trillion dollar market.

Significantly, he worked on developing the world's first ETF ratings and analytics service.

Bitwise crypto ETF

Though it may be focusing on cryptocurrencies, as opposed to the broader financial markets, Bitwise is still working on something akin to an ETF.

The company claims to have launched the first cryptocurrency index fund in the world.

And on top of that, Hougan is going to be working on developing the company's cryptocurrency ETF.

That ETF will be comprised of ten different cryptocurrencies.

Whether or not that will be successful remains to be seen.

The Securities and Exchange Commission has repeatedly rejected applications to create a cryptocurrency ETF.

Just a couple of weeks ago, Cboe withdrew its application to establish an ETF with the SEC.

Representatives of the SEC have said in the past that the American regulator is unlikely to give its approval to a cryptocurrency ETF until the market stabilizes.