Dan Morehead, CEO of Pantera Capital hedge fund, published on Medium his vision of the development of the cryptocurrency market in 2019 and a look into the future.
Dan Morehead declares that 2019 showed clearly: there will be no quick money in crypto market anymore.
– Investors in BTC and distributed ledger technology should view their assets with a long-term lens, and expect to reap the rewards in a span of about five to ten years.
Morehead recalls that investors who entered crypto in 2010 turned out to be in big profit. And now “investors should look at crypto assets with a “venture-style” mindset”.
Since December 2010, Bitcoin went through eight cycles of the bull and bear markets, the average cycle of the bull market lasted 158 days, and the ROI reached 11x. The fall reached 57% and lasted an average of 113 days.
According to Dan Morehead, there are 3 challenges to the development of the market:
- Blockchain platforms need to be able to process larger amounts of application data and transactions;
- New fiat onramps allowing easy conversions between digital currencies and government-backed money need to be created;
- And proper infrastructure for the development of more sophisticated decentralized applications have to emerge for the industry to thrive in the long run.
Dan Morehead has extensive expertise in the cryptocurrency market. He is not only CEO at Pantera Capital hedge fund, but also serves on the governing bodies of the popular European crypto exchange Bitstamp and the African liquidity provider BitPesa. With his expertise, Morehead states that fundamental factors are decisively influencing the cryptocurrency market:
– With leading endowments and companies like Yale, Fidelity, JPMorgan, and ICE (Bakkt) now in blockchain – coupled with scalability improvements – I think we’ll continue on the same logarithmic trend.