In recent years, cryptocurrencies have been one of the hottest investments for seasoned investors and new investors alike. Cryptocurrencies have also seen an exponential growth in value and in the number of cryptocurrencies available for exchange. One of the widest cryptocurrency investment firms, Pantera Capital, has taken full advantage of the gain in the cryptocurrency market. This past Friday, they released a report showing that across the lifetime of their investment, which has exceeded 5 years, they have achieved a return of over 10,000 percent.
To take a look at the real successes of the investment firm let’s go back to 2013. At the time, an email sent by Dan Moorehead, who is now the Co-Chief Investment Officer for the firm, forecasted that Bitcoin would reach a value of $5,000 despite a current value of only $104. In the email, Morehead said, “Bitcoin dominates cash, electronic fiat money, gold, bearer bonds, large stone discs, etc. It can do all the things that each of those can. It is the first global currency since gold. The first borderless payment system ever.”
Three months after this initial email, Bitcoin was already trading at $253. At this point, Morehead again began to forecast great returns for cryptocurrencies as a whole. Morehead compared it to Microsoft back in the day at $0.20 per share. In his mind, buying Bitcoin at that point was very similar to Microsoft because he knew that given time, buying at such a cheap price would yield a great return. In addition, he saw the current market cap of $3 billion as well below the leaps and bounds that Bitcoin could make.
We now fast forward to present-day. Since the time of these initial emails, Pantera launched its own hedge fund to invest in blockchain startups from around the world. They have seen first-hand the disruption that blockchain has caused throughout many corporations and in the world economy as a whole. The firm understands the importance of blockchain and is moving in organized groups to meet other investors who share the same interests.
Despite the ten thousand percent lifetime return, the firm continues to have a bullish outlook on bitcoin and other cryptocurrencies. With the recent downturn in cryptocurrencies and forecasted increased market cap of Bitcoin and cryptocurrencies as a whole, it is no surprise that they feel this way. In recent months some of the firm’s investments have contributed to this bullish sentiment. Most notably, Pantera Capital invested in the startup Origin and “stablecoin” startup, Basis.