Dan Morehead, CEO of blockchain investment firm Pantera Capital, says that although he’s extremely bullish on Bitcoin, the decentralized finance (DeFi) space will likely be much more lucrative in the coming years.
In a new interview with CT, the Pantera Capital chief executive says DeFi is still relatively undervalued compared to BTC.
“Bitcoin has a $250 billion market cap, and that’s great. It’s already achieved that. Whereas, the other use cases like DeFi are still just in their nascent state. DeFi has a market cap now of about $4 billion. If you’re looking at Bitcoin at $215 billion or DeFi at $4 billion, it seems like DeFi is cheaper, right?”
Morehead launched Pantera’s Bitcoin fund back in 2013, when BTC was just $104. Through Pantera’s BTC investments have done remarkably well, the crypto titan believes that DeFi is now in a position to outpace the largest cryptocurrency, rising 10,000% in the years to come.
“Our first [Bitcoin] fund is up 17,000%. That’s awesome. I don’t think you can go up 100x from there. At that point, you’re getting to a 20 trillion [bitcoin market cap]. That’s getting very, very large relative to the world or money or all the different scales you could put on it. But DeFi, it could go to $400 billion. There’s no reason that couldn’t happen. You have much more upside I think, in these small altcoins DeFi protocols.”
Dan Morehead also responded to a recent opinion of Dan Held, head of business at Kraken, that Bitcoin could go up to $1 million, noting that while such a jump in BTC value is possible, it is more likely to happen in DeFi.
“I want to say we’re massively bullish on Bitcoin. We own a ton of Bitcoin, and it maybe could go to a million, but that is 100x from here and to me that’s really the edge of possibility because you’re getting into a number that’s $20 trillion and all money on earth is only $100 trillion, so you’re really getting to a huge thing at that point.”
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