Pantera Capital co-founder and chief executive Dan Morehead says he believes Bitcoin will explode in a matter of months.
In a new episode of What Bitcoin Did, Morehead says he expects central banks to steadily debase fiat currencies in response to the coronavirus crisis, leaving investors to seek alternative assets with a fixed monetary supply. The Pantera Capital CEO describes the devaluation of the UK pound sterling as an example.
“The British pound sterling, obviously, used to be worth a pound of sterling silver. They have printed so many pieces of paper money [that] it takes 184 paper pounds to buy one pound of sterling silver… You don’t notice it but your currency is very quickly being debased.”
Morehead also points to the US dollar and says the greenback has lost 90% of its purchasing power in the last 70 years.
“When they’re increasing the supply of paper money at just these astronomical rates, you kind of want to be in something that they can’t print more of and you can’t print more gold. You can’t print more Bitcoin.”
When money managers start to refocus, Morehead predicts the crypto market will surge within three to nine months.
“I think it’s going to take a few months for the whole world to sort through their own problems. Most money managers are not thinking about new assets they can invest in. They’re thinking about their kids and their family and what they can do to protect themselves.
But over the next couple months, people will start refocusing on new opportunities, and I think the crypto markets will really explode about three to nine months from now. Not right now, but once people really have the time to look into it, they’ll really explode. From all the cycles I’ve seen over 35 years, I have a very strong intuition that Bitcoin will hit a record price within the next 12 months and maybe way higher than that.”
The digital investment firm and hedge fund executive says it may be now or never for the crypto market at large.
“Bitcoin was born in a financial crisis. It will come of age in this one… I really think that this will be a test. Basically, in a year or two when we look back, Bitcoin and blockchain is either going to have been very impactful and it’s off to the races or it will have failed.”
Meanwhile, Morehead expects the stock market to struggle big time. He says that an immediate V-shaped recovery many are hoping for is not going to happen.
“I think this is the most complicated and really crazy environment that I’ve ever experienced. There’s so much uncertainty. The only thing that I’m certain of is it’s not going to be a V-shaped recovery.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Vladi333