Dan Morehead, Pantera Capital’s founder and CEO, gave an intriguing observation on Bitcoin’s ascent, comparing the cryptocurrency’s early acquisition to gold in 1000 BC. Pantera made its first investment in Bitcoin for $74 in July 2013, while the asset was still in its early stages, with fewer than 1% of global financial wealth invested. Nearly a decade later, Pantera’s first investment has yielded an astonishing return of over 130,000%.
In a recent blog post, Morehead detailed his efforts to convince skeptical investors that purchasing Bitcoin was not just akin to purchasing gold, but also akin to purchasing gold at a time when its true value was not yet apparent. His prognosis back then was that Bitcoin would either collapse or see huge growth; now, he believes the cryptocurrency has reached “escape velocity,” with over 300 million users globally and over 5% of financial value exposed to it.
Looking ahead, Morehead believes Bitcoin may eventually become a $15 trillion asset, with a price per Bitcoin reaching $740,000 by 2028. This increase, he claims, will be driven by institutional adoption, which will be aided by regulatory clarity and the approval of spot Bitcoin ETFs by big financial institutions such as BlackRock and Fidelity.
Despite early setbacks, notably Bitcoin’s 87% drop in 2013, Morehead remained confident in the currency’s long-term potential. Reflecting on those chaotic times, he sarcastically stated that Pantera spent 88 Bitcoin, which is now worth more than $8.6 million, on hotel accommodations, reflecting on wasted opportunities in retrospect.
With Bitcoin’s sustained momentum and institutional interest, Morehead believes that its journey is far from done and that the future holds even greater rewards.
