Pantera CEO: Bitcoin in 2013 Like Gold in 1,000 BC
28 Nov, 2024 ● Crypto people
Dan Morehead, founder and managing partner of Pantera Capital — the first cryptocurrency fund in the United States — once described buying Bitcoin as comparable to buying gold during the Iron Age, emphasizing its untapped potential at the time.
In a Nov. 26 blog post, Morehead highlighted his fund’s remarkable performance, noting it has gained over 130,000% since its inception.
He reflected on an investment memo he wrote in August 2013, recalling a conversation with a skeptical investor:
“I was discussing bitcoin with an investor yesterday and he replied somewhat dismissively ‘It’s just like buying gold.’ No, it’s like buying gold in 1000 B.C,” Morehead said.
Pantera Bitcoin Fund, launched in July 2013, has achieved a lifetime return of more than 1,000 times its initial investment, with Bitcoin purchased at $74.
At the time, Morehead noted that only 1% of financial wealth had exposure to Bitcoin and predicted that as awareness grew, Bitcoin would either "go to zero or go up by orders of magnitude."
Today, Morehead believes Bitcoin going to zero is no longer a possibility.
Speaking to CNBC’s Squawk Box on Nov. 27, he remarked that Bitcoin has reached “escape velocity,” with over 300 million global users now holding the asset.
Currently, about 5% of global financial wealth is exposed to Bitcoin, according to Morehead, who expects this figure to rise as regulatory clarity in the United States accelerates institutional adoption.
The introduction of spot Bitcoin exchange-traded funds (ETFs) by major players like BlackRock and Fidelity has initiated a “massive transformation,” he added.
Morehead predicts Bitcoin could ultimately become a $15 trillion asset, pushing its price to approximately $740,000 — a 667% increase from current levels — potentially by April 2028.
“I just can’t help thinking that we still have many more years of very compelling returns,” he said.
Despite Bitcoin’s growth, Morehead reflected on the challenges of the early days.
He recalled Bitcoin crashing by 87% in December 2013, just six months after Pantera’s first purchase.
During that period, he traveled extensively, conducting 170 meetings across the globe to raise investments, only to secure a combined $1 million.
Interestingly, Pantera used Bitcoin for practical purposes during its early years, including paying for hotel stays through Expedia, one of Bitcoin’s first corporate adopters.
Over 59 nights on the road, the firm spent 88 Bitcoin on accommodations, an amount worth over $8.6 million today.
“We coulda bought two hotels [with that money]!” Morehead quipped.
As of now, Bitcoin is trading at $95,135, up 2.7% in the last 24 hours.
Sources:
https://cointelegraph.com/news/buying-bitcoin-2013-buying-gold-in-1000-bc-says-pantera
https://panteracapital.com/blockchain-letter/1000x-pantera-bitcoin-fund/
