Charles Hoskinson, the founder of Cardano (ADA), predicts cryptocurrencies will separate from traditional markets within two or three years.
Hoskinson tells Fox Business News that he initially believed people would use cryptocurrencies as a safe haven in times of global economic decline, but they have actually correlated with other risk assets and the S&P 500 (SPX).
According to the CEO and founder of Input Output, the crypto market will become independent of other investment classes as it matures.
“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,” he said.
The CEO added, “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.”
The Merge And Vasil Hard Fork Prove That Innovation is Happening During Bear Market
In addition, Hoskinson says blockchain upgrades like the recent Vasil fork of ADA or the Ethereum (ETH) merge show how innovation is occurring between different blockchain projects even in the bear market.
“[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,” Charles Hoskinson said.
“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,” he detailed.
It is also mentioned by Charles Hoskinson that, looking at the cryptocurrency space more generally, most people are building, and even though the macro environment isn’t so positive, the individual environment of each cryptocurrency, whether it’s Ethereum with the merge or Cardano with Vasil, is improving 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,” he said.