Bitcoin: Pantera Capital against the FED
Bitcoin: Pantera Capital against the FED
Bitcoin

Bitcoin: Pantera Capital against the FED

By Alfredo de Candia - 16 Sep 2020

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The famous Pantera Capital investment fund has recently written an open letter addressed especially to all those who have not yet become aware of the crypto revolution, inviting them to buy Bitcoin (BTC).

The letter opens directly with an important statement:

“The FED promises to double inflation. Buy Bitcoin”.

As everyone will be aware, the FED has announced, through its Director Jay Powell, that in order to combat the current crisis, inflation will increase and new dollars will be printed and distributed directly among US citizens.

“In conducting monetary policy, we will remain highly focused on fostering as strong a labor market as possible for the benefit of all Americans. And, we will steadfastly seek to achieve a two percent inflation rate over time”.

This means that people’s purchasing power will decrease, as prices will adjust to the market and increase as a result of inflation: in essence, more money will be needed to recover raw materials.

And this is the reason why Pantera Capital invites, once again, to bet on a deflationary asset like Bitcoin (BTC)

Pantera Capital’s reasons for choosing Bitcoin

In the letter, Pantera has also included a graph comparing the values of the various assets and commodities year by year.

The graph shows that in last place there is oil with a loss of 30%, followed by real estate with a loss of 21% and shares with a slight increase of 8%. Only gold is better with 30%.

Cryptocurrencies, on the other hand, show triple-digit growth rates, such as Augur (REP) with 146%, Ethereum (ETH) with 238% and 0x (ZRX) with 244%.

Another argument in favour of Pantera Capital’s analysis is that of Bitcoin’s cyclicality and how over time it has led to truly incredible price increases, despite the fact that there have also been falls.

It is also interesting to note the annual performance figures for the various investment funds with which Pantera Capital operates: Bitcoin has increased by 61%, digital assets by 168%, long-term ICOs by 270% and ICOs by 323%, demonstrating that crypto assets can provide a real hedge against inflation.

When looking at Pantera’s investments, these include Yearn Finance‘s YFI token, and LUNA, while ICOs include Polkadot (DOT), Flexa and Filecoin, all projects that will or have been scoring very interesting numbers.

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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