Pantera Capital CEO Dan Morehead says that although he sees Bitcoin’s (BTC) value increasing, its share of the cryptocurrency market will decline over time as he expects other digital assets to outperform it.
During this month’s SALT New York conference, Morehead says he’s long-term bullish on Bitcoin but notes that other crypto assets have better upside potential.
“Obviously, there was a time [BTC] was the only blockchain so it was 100% of the industry. And then as more and more interesting use cases come out, I think Bitcoin dominance, or its share of the overall market, is in a long-term secular decline while it’s going up 10x.
I think Bitcoin’s going to go up a ton. It’s just other things I think would go up more.”
Morehead, who oversees a crypto hedge fund with $4.5 billion in assets under management, highlights that a similar phenomenon took place in the tech sector.
“It’s kind of like in the tech space. Twenty years ago, Microsoft was kind of the whole industry. And since then, it’s gone up 10x, which is amazing, you know great return, but other things Apple, Google, Facebook, whatever, have gone up even more, and so I think that’s my analogy for the blockchain space.”
Morehead also explains why he is extremely bullish on decentralized finance (DeFi) platforms.
“All of DeFi is only worth $20 billion today. And traditional finance is worth $3 trillion. I wouldn’t bet all my life savings that DeFi is going to work or be great or whatever. But when you have that kind of leverage, it’s less than 1% of the value of traditional finance, that I think it is really, really asymmetric trade.
And one of the things we learned with the rest of the internet is you not only replicate what was pre-existing like e-mail didn’t just replicate snail mail. It created all kinds of ways to communicate that we didn’t have before that. And so DeFi might do things that we don’t even have in traditional finance yet. So it seems pretty clear to me that at these levels blockchain is one of the most compelling trades I’ve ever seen.”
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