Originally published on: November 28, 2024
Dan Morehead, the mastermind behind Pantera Capital, referred to buying Bitcoin in 2013 as akin to acquiring gold during the Iron Age. According to him, the cryptocurrency fund has experienced an eye-popping growth of over 130,000% since its inception.
In a blog post dated Nov. 26, Morehead recollected a conversation with an investor who likened Bitcoin to gold. Dismissing this comparison, Morehead emphasized that buying Bitcoin was more akin to purchasing gold in 1000 B.C. These statements were originally part of an investment memo he crafted back in August 2013.
Pantera Bitcoin Fund, introduced by Morehead in July 2013, has yielded a staggering return of over 1,000 times on its initial Bitcoin investment priced at $74. He firmly believes that as more investors embrace Bitcoin, its value will either soar significantly or plummet to zero.
Morehead went on to express his confidence that Bitcoin is now past the point of going to zero. With 300 million global Bitcoin owners, he stated during an interview on CNBC’s Squawk Box on Nov. 27 that the cryptocurrency has reached “escape velocity.”
The increasing exposure of about 5% of financial wealth to Bitcoin indicates the potential for further growth. Morehead pointed out that regulatory clarity in the U.S., along with institutional interest from companies like BlackRock and Fidelity, is driving a substantial transformation in the Bitcoin market.
He predicted that Bitcoin could evolve into a $15 trillion asset, propelling its price to approximately $740,000 – marking a 667% surge from current levels. Morehead forecasted that this milestone could be achieved by April 2028.
Despite projecting a bright future for Bitcoin, Morehead reflected on the cryptocurrency’s tumultuous history – recalling an 87% crash in December 2013, mere months after Pantera’s initial investment. He recounted embarking on a global journey for meetings and ultimately calling off $1 million worth of investments.
Interestingly, Bitcoin was employed to pay for Pantera’s accommodations through Expedia, an early adopter of the cryptocurrency. Over 59 nights on the road, the company expended 88 Bitcoin, equivalent to over $8.6 million at present rates.
As of now, Bitcoin is trading at $95,135, showcasing a 2.7% increase over the last 24 hours.
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