Pantera Capital is one of the most popular investment funds based on the blockchain, and its founder just predicted that the cryptocurrency market is probably going to reach $40 trillion. Dan Morehead, Pantera’s founder, has been praising Bitcoin and, despite the current market value being $400 billion, he anticipates that it will increase until it reaches $40 trillion.
“Obviously, we’re very bullish on the space. We think we’re way below, maybe an order of magnitude — or two — below the real fundamental fair value of blockchain,” he said, stating later that “the industry as a whole is $400 billion. It easily could go to $4 trillion, and $40 trillion is definitely possible.”
He gave this prediction with the caveat that this is going to take up to the next ten years, and not overnight. Pantera Capital currently handles assets worth 1 billion dollars, with 10% of them invested in Bitcoin. When asked about its investment breakdown, Morehead explained that their most significant position is in Icon, a Korean blockchain company.
Morehead attributes the imminent recovery of Bitcoin to the increased attention from institutional investors. He explained to interviewers that previously, Bitcoin was considered to be somewhat “skanky” by investors and many hedge fund types. However, this perception has changed. Right now, 10% of Pantera’s capital investments are institutions, but he expects that this number is going to increase to half soon.
According to him, anything that is worth $400 billion can’t be ignored for a long time. Hundreds of investment companies and hedge funds with a focus on cryptocurrencies have opened up during the last two years so they can make significant profits from blockchain technology and cryptocurrencies.
The popularity of Bitcoin has been increasing rapidly during the past few years, with companies offering it to customers as a form of payment. Some ended up losing money last year when Bitcoin suffered losses, and Pantera was no exception.
Pantera has changed his mind about where crypto is going, having said in December 2017 that Bitcoin’s worth is going to decrease by 50% – but this is exactly what happened in the following quarter. Operating since 2011, Pantera is one of the most prestigious and oldest names in the cryptocurrency business. However, cryptocurrency pricings have been continuously increasing, and it has even been reported that Nobuaki Kobayashi sold 16,000 Bitcoins. That may have an effect on cryptocurrency prices over the next couple of days.
Dan Morehead’s statements are entirely different from what Paypal’s founder stated a couple of days ago, where he called Bitcoin a scam and predicted that it is going to collapse soon.