Pantera Capital CEO predicts US geopolitical adversaries will create Bitcoin reserves
- Pantera Capital CEO stated that countries like the US and China will create Bitcoin reserves in the next decade.
- This is facilitated by the weakening of the dollar and the strengthening of Bitcoin.
Over the next decade, US geopolitical adversaries will begin investing in Bitcoin as the dollar gradually loses its role as a reserve currency, Pantera Capital CEO Dan Morehead stated on the Empire podcast.
During this episode, the participants discussed a wide range of topics, from Bitcoin cycles to the activities of treasury firms (DATs) and global trends. Among other things, Morehead shared his opinion on whether Bitcoin could become a global reserve currency.
Commenting on this, he noted that this changes every 80-100 years. While in the past it was first gold coins, the escudo, and then the British pound, in today's world the reserve currency is the US dollar.
“No one has lasted longer than 100 years. And you're already seeing some countries shifting their reserves to Bitcoin,” Morehead noted.
According to him, the Persian Gulf countries will be the next to take such a step. After them, the US's geopolitical adversaries, including Russia and China, will likely create Bitcoin reserves.
“Why? Because, if you think about it, China holds about $1 trillion in US Treasuries, and these assets could be liquidated. It's insane to hold all of its national savings in an asset that can simply be liquidated by an adversary. Within a decade, perhaps not overnight, countries like China or Russia will begin to shift some of their reserves into Bitcoin and other cryptocurrencies,” Morehead emphasized.
The CEO of Pantera Capital positions Bitcoin and, in particular, gold as alternatives to the dollar. He also believes that the current rise in precious metal prices is driven, in part, by purchases by various countries.
We previously reported that gold had reached a new all-time high amid a deep correction in Bitcoin.
“In terms of macroeconomics, the risk to bonds and currencies is very high. Inflation remains high, and fiscal policy is very loose. The dollar has been strongly strengthened, but is now starting to weaken. Political and trade wars are also undermining confidence in the dollar as a reserve currency. People are starting to look for alternatives—gold and Bitcoin are becoming these alternatives, because currency stability and predictability are key factors,” Morehead emphasized.
He also noted Bitcoin's still-low correlation with high-risk assets, particularly the S&P 500 index. Morehead explained that the fluctuations in this indicator are due to excess liquidity, but it is currently at a low level.
Pantera Capital CEO expects the dollar to weaken further in the next 12-18 months, leading to Bitcoin growth.
Source: cryptonews.net
