Cardano (ADA) co-creator Charles Hoskinson predicts 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 for 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 believe that crypto would be counter-cyclical and be a place where people would put assets when they are fearful of the global economy. But so far they seem to be moving in parallel with tech stocks and some more of the more standard equity markets. So that’s kind of a problem. But all things considered, I think that long term the crypto markets are going to decouple from the traditional marketplaces and have their own economy similar to how energy has its own economy or these types of things. It’s probably going to occur in the next 24 or 36 months. I think there’s a lot of opportunity here.”
Hoskinson also says the blockchain upgrades like the recent Vasil hard fork for ADA or the Ethereum (ETH) merge 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 a yearly basis is all about making things better, faster and cheaper, and ultimately improving the use and utility of the platform. So Vasil was about 12 months of work, and we just got it out last month, and it’s really exciting to see that it’s caused a lot of great positive upgrades in our community.
But more broadly, when we look at the cryptocurrency space this is the case. Most people are building and while the macro environment is not so positive, the individual environment of each cryptocurrency whether it be Ethereum with the merge or Cardona with Vasil is looking better and better every day. And we keep getting more capabilities. And you know, there’s great growth in everything from GameFi to Metaverse to NFTs [non-fungible tokens] to DeFi [decentralized finance]. So I’m very bullish in the long term.”
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