The CEO of Pantera Capital who has raised close to 300Mn Us Dollar stated that cryptocurrency is a superior form of currency. Calling Bitcoin, the biggest disruption of this generation.
Situational Bias has called Pantera to state that the cryptocurrency market capitalisation could one day be worth $40 Trillion. The firm has raised, close to $78 Million in the past one month to create another fund. Interestingly, the recent performance of their digital asset fund hasn’t dampened their enthusiasm. Since December, the fund is down 23.7%, while bitcoin is down 20.9%. Perhaps, this could be owed to their decision in April to long Bitcoin whilst the rest of the market remained short.
“That’s actually a good time to increase your position” Morehead said, noting that investors in Pantera’s funds generally fail to follow this rule — most subscriptions are purchased when the fund prices are high.
The current bear market is one of seven that bitcoin has been through, Morehead said. He thinks it’s as low as it’s going to get, and in 10 to 12 months, it will be markedly higher.
“It’s highly likely to be the low point for the industry,” he said, adding that the bitcoin price has been growing at a stable rate since the beginning. “My normal view is that it’s going to return to its trend,” he said.
Regarding Warren Buffet’s claim earlier this year that bitcoin is “rat poison squared,” Morehead quipped:
“It is rat poison; it’s just the banks and credit card companies are the rats.”
Morehead offered a host of reasons for his long-term optimism for blockchain technology and cryptocurrency.
Blockchains, he said, are the “final piece” of the protocol structure that the internet is, a way to move funds without paying expensive third parties.
Bitcoin is not a category killer, he said, but a “serial killer,” meaning it will affect many different use cases. The Internet, in the beginning, took time to develop its leading use cases, like Uber.
He called blockchain the most “asymmetric risk-reward trade” he has seen. If you invest in it, you can’t lose everything. Many of the funds invested in bitcoin have the potential to rise in value 25 times, he said, which is not something you see in other investment opportunities.
“I think we’re heading towards a post-capitalist era,” he said. In capitalism, a wealthy individual invests to bring gain. The last 30 years has been an “interregnum period” where people who were not wealthy created valuable technologies.
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