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.
Morehead claims that crypto is experiencing the same change as risk assets that are flexible and will bounce back on its own principles. It will therefore be linked to macro dynamics in a short time.
In a news report, Morehead highlighted High-interest rates are making it difficult to invest in stocks and bonds. However, blockchain can trade without any influence from interest rates. So blockchain can continue trading using its existing structures.
Morehead believes that Bitcoin (BTC) will rise even though it experienced lows in the earlier part of the year. There are many tokens that are up. Ethereum (ETH) has risen 60% since the lows. He predicts that bitcoin will rise 10 times over the long-term, despite users’ turndown due to other tokens dominance.
‘’Blockchain is one of the of the most interesting trade in today’s world’’ says Morehead. Decentralized Finance (DeFi), currently valued at $20 billion, is $3 trillion in traditional finance. DeFi may eventually cover things not covered in traditional finance.
Ethereum and the Merge
Morehead thinks that Ethereum’s Transition The Merge, which transforms Proof-of Work to Proof-of Stake through the Merge, is a major move in the blockchain industry.
He said that Ethereum prices had been drifting, but they started to rally after the Merge date. Because it is very similar to corporate governance, institutions will be able to easily grasp the Proof of-stake model.
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 poised to be an asset class. Everyone will have a crypto team and a block allocation.