If you own bitcoin (BTC), this may interest you. Dan Morehead, the founder of Pantera Capital, has been discussing how BTC could reach $42,000 by the end of this year, and how it has the potential to hit $356,000 in just a couple of years.
According to Cointelegraph, Morehead delivered his comments on an episode of the Unchained podcast on 23rd July. His firm, Pantera Capital is an investment firm “focused exclusively on ventures, tokens, and projects related to blockchain tech, digital currency, and crypto assets.”
He was quite specific about the $42,000 target this year, and claimed that this would be consistent with the top cryptocurrency’s logarithmic growth rate: “Graph the price of Bitcoin logarithmically […] its trend is going to grow at 235% compound annual growth rate and […] that put Bitcoin at $42,000 at the end of 2019. And I know this sounds crazy but we’re essentially halfway back there. […] I think it’s a good shot that by the end of the year we hit that. And if you just extrapolate that line out for another year it’s $122,000 per Bitcoin and then one more year, $356,000.”
Morehead was also very positive about developments in the bitcoin network that would speed up transaction times, an issue that has dogged BTC for some time. He believes the transaction time will increase quite quickly as the technology is developed.
He also commented on the possibility of a Bitcoin exchange-traded fund (ETF). He referred to copper, the last asset to be approved for an ETF, saying that approval took three years, “but copper has been around for 10,000 years, right?” Therefore, it might take a while before we see a bitcoin ETF.
Morehead also believes that most altcoins will fail, ‘but thousands of decentralized applications will come out of the ones that succeed.”