Bitcoin has a good chance of reaching $42,000 in value by the end of the year and $356,000 within three years. The optimistic forecast on the bitcoin price comes from Dan Morehead, founder and CEO of Pantera Capital, who attended the “Unchained” podcast of Laura Shin, which was also attended by Joey Krug, founder of Augur and co-chief investment officer at VC Pantera Capital.
Morehead’s price forecast for bitcoin stems from the life cycle analysis of the blockchain and cryptocurrency sector, bearing in mind that bitcoin and the underlying technology have only existed for a decade but it will take at least another decade to unleash its full potential.
Looking at the short term, the analysis that Pantera Capital has made would envisage BTC at:
- $42,000 by 2019;
- $122,000 by 2020;
- $356,000 by the end of 2021.
The CEO of Pantera Capital is aware that his forecast may sound a little crazy, but he is optimistic that the $42,000 can be reached by December 2019.
In any case, Morehead does not link the success and development of blockchain technology to the price of bitcoin, so it is not its value that indicates the evolution or involution of the technology. In the same way that previous results are never a guarantee of future results.
Broadening the discussion to the types of investors who are now present in the cryptocurrency industry, Morehead recalls that in the beginning there were mainly professional Wall Street investors, who were investing their personal funds in cryptocurrencies.
The CEO of Pantera Capital remembers how some of these professionals also invested in his VC, while today there are hundreds of investors representing different sectors. So Morehead highlights the fact that we are moving to a stage where even institutional investors with large capital are getting involved, but he is aware that this type of investor gets in at a slower pace.
Pantera Capital’s investments in Proof of Stake blockchains
Morehead also reveals that an interesting part of their current investments is directed towards proof of stake blockchains, since PoW blockchains face the problem of consuming too many environmental resources.
For this reason, Pantera Capital is now investing shares of its capital in staking activities.