Cardano creator Charles Hoskinson predicts that crypto markets will decouple from each other to their own economy
Cardano (ADA) co-creator Charles Hoskinson predicts that cryptocurrencies will decouple from traditional markets within two or three years.
In a new interview with Fox Business News, Hoskinson says he initially thought people would use cryptocurrencies as a safe haven investment during global economic downturns, but instead it has experienced a price correlation with other risk assets and the S&P 500 (SPX).
However, the Input Output CEO and founder says that as the crypto market matures, it will begin to operate independently of other investment classes.
“I used to think that crypto would be counter-cyclical and be a place where people would put assets when they are afraid of the global economy. But so far they seem to be moving in parallel with tech stocks and some more of the more standard stock markets . So it’s kind of a problem. But all things considered, I think that in the long term, the crypto markets are going to disconnect from the traditional marketplaces and have their own economy similar to how energy has its own economy or these kinds of things. It is probably going to happen in the next 24 or 36 months. I think there’s a lot of opportunity here.”
Hoskinson also says that the blockchain upgrades like the recent Vasil hard fork for ADA or the Ethereum (ETH) merger illustrate how innovation is happening across different blockchain projects during the bear market, and there is significant growth potential.
“[Cardano is] a slow and methodical project. Everything we do on an annual basis is about making things better, faster and cheaper, and ultimately improving the use and usefulness of the platform. So Vasil had about 12 months of work and we got it out last month and it’s really exciting to see that it’s caused a lot of good positive upgrades in our community.
But more generally, when we look at the cryptocurrency space, this is the case. Most are building, and although the macro environment is not so positive, the individual environment of each cryptocurrency, whether it is Ethereum with the merger or Cardona with Vasil, is looking better and better every day. And we are getting more and more opportunities. And you know, there’s a lot of growth in everything from GameFi to Metaverse to NFTs [non-fungible tokens] to DeFi [decentralized finance]. So I am very bullish on the long term.”
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