Dan Morehead CEO of Pantera Capital has shared his view on the current state of the blockchain economy in a recent interview with Real Vision’s Co-founder & CEO Raoul Paul.
According to Morehead, crypto is experiencing a change similar to risk assets based on flexibility and therefore likely to bounce back based on its own principles. As a result, it will be connected to the macro dynamics over a short period of time.
In a news report, Morehead highlighted that investing in stocks and bonds is getting more difficult because of high-interest rates, unlike blockchain which can trade on its own without the influence of interest rates. Therefore blockchain can continue trading under its existing structures.
Morehead is optimistic that Bitcoin (BTC) will eventually rise despite experiencing lows earlier in the year. A lot of tokens are now up, and Ethereum (ETH) has risen up to 60% since the lows. He predicted that bitcoin will go up 10 times in the long run despite experiencing a turndown from users due to the dominance of other tokens.
‘’Blockchain is one of the of the most interesting trade in today’s world’’ says Morehead. Decentralized Finance (DeFi) is currently worth $20 billion while traditional finance is worth $3 trillion. DeFi might eventually do stuff that is not covered by traditional finance.
Ethereum and the Merge
Morehead thinks that Ethereum’s transition from Proof-of-Work to Proof-of-Stake through the Merge is a big move for the blockchain industry.
He stated that prices for Ethereum were previously drifting but started rallying after a date was scheduled for the Merge. Institutions will find it easy to grasp the Proof-of-stake model easily because it is similar to how corporate governance works.
There might also be the risk of experiencing lows if the Merge doesn’t go as planned in terms of regulatory laws that are not very clear, particularly in the United States, this might prevent innovation and cause companies to go offshores. ‘’The biggest risks are no more because they have been taken care of over the past 13 years’’ says Morehead.
Blockchain is set to become an asset class where everyone will have a blockchain team and a blockchain allocation.
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