Pantera Capital co-founder and CEO Dan Morehead said he thought Bitcoin would explode in a few months.
In a new episode of What Bitcoin Did, Morehead says he expects central banks to regularly degrade fiat currencies in response to the coronavirus crisis, leaving investors to look for alternative assets with a fixed money supply. The CEO of Pantera Capital describes the devaluation of the British pound sterling as an example.
“The British pound, obviously, was once worth a pound of sterling silver. They printed so many pieces of paper money [that] you need 184 pounds of paper to buy a pound of sterling silver … You don’t notice it, but your currency is very quickly degraded. “
Morehead also points to the US dollar and says the greenback has lost 90% of its purchasing power in the past 70 years.
“When they increase the supply of paper money to these astronomical rates, you sort of want to be in something they can’t print more and you can’t print more gold. You can’t print more of Bitcoin. “
When fund managers start to refocus, Morehead predicts that the crypto market will grow in three to nine months.
“I think it will take the whole world a few months to solve its own problems. Most fund managers don’t think about the new assets they can invest in. They think about their children and their families and what they can do to protect themselves.
But over the next two months, people will start to refocus on new opportunities, and I think crypto markets will really explode in about three to nine months from now. Not at the moment, but once people really have time to take an interest, they will really explode. Of all the cycles that I have seen for over 35 years, I have a very strong intuition that Bitcoin will reach a record price in the next 12 months and maybe much more than that. “
The digital investment firm and hedge fund executive says it may be now or never for the crypto market as a whole.
“Bitcoin was born in a financial crisis. It will mature in this one … I really think it will be a test. Basically, in a year or two, if we look back, Bitcoin and blockchain will have either had a very big impact and it’s gone for the races, or it will have failed. “
Meanwhile, Morehead expects the stock market to struggle hard. He says that an immediate V-shaped recovery that many hope will not happen.
“I think it’s the most complicated and craziest environment I have ever known. There is so much uncertainty. The only thing I know for sure will not be a V-shaped recovery. “
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