Pantera Capital founder Dan Morehead sees Bitcoin (BTC) as a historic investment opportunity. Morehead, who founded the Bitcoin Fund in 2013, developed a strategy that has yielded huge returns for early investors. As of today, the fund has grown by more than 130,000 percent since its initial investments.
In an investment note in 2013, in which he compared Bitcoin’s potential to gold, Morehead drew an analogy between buying Bitcoin and buying gold in the Iron Age. At that time, Bitcoin was not yet widely known, and this statement was aimed at convincing investors to invest in Bitcoin. The Pantera Bitcoin Fund made its first purchase when the BTC price was only $ 74, and this investment yielded a 1000-fold return. At that time, only 1 percent of global financial wealth had encountered Bitcoin. Morehead predicted that Bitcoin would either become completely worthless or experience a significant increase in value. Today, Morehead believes that the possibility of Bitcoin falling to zero has been eliminated, and says:
“An asset owned by 300 million people has now reached ‘escape velocity.’”
Morehead says that 5 percent of financial wealth now consists of Bitcoin. He also believes that this rate will increase even more with increased regulatory clarity in the US. The entry of major financial institutions such as BlackRock and Fidelity into the market with spot Bitcoin ETFs, according to Morehead, marks the beginning of a “massive transformation.” Morehead predicts that Bitcoin could eventually become a $15 trillion asset, which could push the price of BTC to around $740,000. Believing that this goal can be achieved by 2028, Morehead states the following:
“We still have years to deliver very attractive returns.”
Pantera’s early years were not easy. In December 2013, the company suffered a major blow when Bitcoin lost 87 percent of its value. Morehead held 170 meetings around the world to convince investors, but was only able to raise $1 million. At the time, Pantera attracted attention by taking innovative steps such as paying for hotels with Bitcoin. For example, 88 Bitcoins were spent for a 59-night stay through Expedia. Today, those Bitcoins are worth more than $8.6 million. Morehead humorously describes the situation as follows:
“Once we paid for 59 nights of accommodation with 88 Bitcoins. Now these Bitcoins are very valuable to us!”
Bitcoin is currently trading at $95,135, up 2.7 percent in the last 24 hours. As Kriptokoin.com reported, BTC’s recent price increase is notable. Morehead is certain that this upward trend will accelerate in the coming years.
