Dan Morehead, the founder of Pantera Capital, has reaffirmed his enthusiasm for Bitcoin, saying it outperforms gold as a reserve asset. With institutional adoption on the rise and regulatory clarification on the horizon, the crypto sector could well explode in 2025.
Written by Eden
Updated on 16/12/2024 at 05:33 by Thomas
Bitcoin, a better choice than gold for reserves
Dan Morehead, the founder and managing partner of Pantera Capital, has made it clear that he considers the cryptocurrency Bitcoin as a better reserve investment than gold.
In an interview with CNBC on Thursday, Morehead compared the development of blockchain technology to historic financial innovations. He also expressed certain optimism for the crypto and blockchain universe. Especially since more and more institutions are exposing themselves to it.
“Right now, most institutions have virtually no exposure to blockchain, so once they start engaging in this space, it should be fine,” he said.
Morehead cited regulatory uncertainty as a key barrier to institutional adoption. Thus, referring to the ongoing lawsuits involving major crypto companies.
These developments, he noted, have created hesitancy among pension funds, endowments and other large investors. He argued in favor of clearer regulatory guidance to facilitate broader institutional participation in the market.
A reserve asset that performs better than gold
One of Morehead’s bold claims was that Bitcoin (BTC) outperforms gold as a reserve asset. Pointing to the US government’s current gold reserves, he argued that Bitcoin offers a more efficient alternative for national reserves.
“Go to digital gold, Bitcoin is much better,” he said.
According to Morehead, the United States already own 1% of the world’s Bitcoinsand it would be a great thing for the United States to take the lead in holding Bitcoin.
He also expressed optimism about the long-term trajectory of cryptocurrency markets, noting that Bitcoin’s price performance has consistently doubled every year during the last decade.
“Bitcoin has more than doubled this year…but that’s not unusual,” he said.
Morehead suggested that 2025 could be a crucial year for crypto, with expected regulatory clarity expected to unlock significant institutional interest. He also sees the stablecoins as a promising area for growth.
Although some large companies remain hesitant to add Bitcoin to their balance sheets. Indeed Morehead thinks thatInsurance companies, pension funds and endowments will drive the next phase of market expansion.
With clearer rules, he argued, institutions will increasingly view blockchain as a viable asset class.
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