On Tuesday, August 14, 2018, CEO and Chief Investment Officer of Pantera Capital, Dan Morehead discussed multiple specs of the crypto and blockchain industry during a conference dedicated to initial coin offerings (ICOs) and digital asset funds.
Having Morehead share his thoughts on current trends, the need for hedge funds and custodians, and what one may expect in the future suits well, given his experience within the field of investment and hedge funds. By far, no one seems to be as enthusiastic as Morehead, as the CEO sees pros contained by the negatives. Let’s take a look at how he perceives the current market trends.
“Good Time To Increase Your Position”
With the hard hits Bitcoin and altcoins took in 2018 thus far, Morehead remains hopeful. In particular, he shared that low prices mean a “good time to increase your position,” adding that many of Pantera Capital’s investors fail to catch on to the opportunity at hand. He also advised that diversifying one’s portfolio is necessary, adding that most of Pantera Capitals’ funds consist of nearly 30 types of digital assets.
In terms of whether or not bitcoin prices will reach anywhere near its all-time high of 2017, Morehead said he has been keeping track of the number of bear markets that BTC experienced so far.
By his projection,
“it’s highly likely to be the low point for the industry […] My normal view is that it’s going to return to its trend.”
The highlight, as per CCN’s report, follows Morehead’s opinion on Warren Buffet’s “rat poison squared” description of bitcoin, where he openly joked, “it is rat poison”. What one would have not expected is him calling banks and credit card companies the “rats”, which clearly signifies the need for digital assets to rid society of traditional, financial institutions.
Blockchain Is The “Serial Killer”
Morehead is for the blockchain technology and strongly believes that it can revolutionize existing protocols. To place prominence on its strength, the CEO refers to the technology as a “serial killer” in a positive way, commenting that it can bring diverse use cases.
He uses the internet as an example, in which he deems great things to take time, but once developed cannot be stopped. Finally, he does not see any harm in investing in blockchain based projects, calling it an “asymmetric risk-reward trade”.
“Institutional Capital Is On Its Way”
Introducing institutional investors to the crypto market seems to be a difficult task at the moment, as the latter’s volatility has left many sitting on the sidelines. To resolve this lack of confidence, many believe that custodians are necessary – especially for those with specific comfort levels with risk.
Morehead isn’t the only representative from Pantera Capital to hold this view, as partner, Paul Veradittakit also seems to be in favor of the idea.
In particular, Veradittakit believes that it won’t be long before “institutional capital” makes it to the crypto market. To back up his argument, he is claimed to have given examples of Goldman Sachs and Northern Trust, who have expressed their interest in the custodian direction. He further added that “custody solutions [are] emerging in all different geographies.”
Intercontinental Exchange (ICE) has made been featured on multiple news outlets as the exchange that provides financial and commodity markets revealed its plans to launch, “Bakkt”, which will serve as a regulated ecosystem for digital assets. As it turns out, Pantera Capital will be contributing a whole deal into the project, namely as an advisor and co-investor.
Clearly, Pantera Capital is making moves with others’ who hold similar values and trust that the blockchain and crypto industry is surely to strive over the course of a year. Do you think Morehead is overconfident or are his projections quite sound?