Dan Morehead, CEO of the financial firm Pantera Capital, shared a brief macroeconomic analysis before his investors in a new monthly letter, where he assured that “inflation is everywhere.”
Dan Morehead, CEO of Pantera Capital.
During the last few months, most of the alternative assets – mainly cryptocurrencies – have seen big jumps in their prices. While much is due to the growing adoption of digital assets in financial strategies (higher demand), some entrepreneurs focus on the depreciation of fiat currencies as a key point of analysis.
“It seems that the price of everything is rising”: this is how Morehead’s short thesis began, in which he recalled that the world is in the midst of a serious financial crisis. Although many believe that stocks, bitcoin ( BTC ), real estate or any other asset are rising, the businessman assured that their value ” is relatively stable, ” while what does move is the value of money.
Paper money has hit a record low against most hard assets.
Morehead singled out BTC as one of the assets that benefited the most from the depreciation of fiat currencies. The cryptocurrency has just surpassed its all-time high of $ 68,500, and accumulates growth of more than 120% so far in 2021.
“The last time bitcoin rallied to its all-time high after falling over 50%, it was up 3.2 times above that shortly thereafter. The average increase of the last three cases to achieve a new historical maximum: 8.8 times in a period of 166 days, “said the businessman.
Finally, the CEO mentioned that gold underperformed the rest of the alternative assets to the dollar, thus becoming “the least good”. In addition, he slipped that “it is losing market share compared to digital gold (BTC)”