Pantera Reports Massive 5-Year Crypto Investment Return


Pantera Capital Management, a Blockchain-focused investment firm revealed via a blog post that Pantera Bitcoin Fund had generated a return of 10,136.15% over the past five years. It also said that it expected the Bitcoin price to reach $67,500 by the end of 2019.

Pantera’s Bitcoin Fund had its five-year anniversary this month. In an email, co-chief investment officers and CEO Dan Morehead and his partner Joey Krug shared the figure as they marked the fund’s fifth anniversary. Although the meteoric rise where “the Fund’s lifetime return is 10,136.15% net of fees and expenses”, they’re still bullish about bitcoin.

The firm thought it would be interesting to share, via two emails sent out to investors by the CEO in 2013, the basis for its original belief that Bitcoin would become a global currency and revolutionize how we deal with cross-border payments.

Email Dated 21 August 2013 (With Bitcoin at $104.48)

“I wanted to share my strong conviction that bitcoin is about to melt-up… 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. 99% of the financial wealth has yet to address bitcoin. When they do, bitcoin is either going to be worth zero or $5,000 /BTC.”

At the time, the reason behind this prediction was based on the possibility to see bitcoin “bitcoin dominates cash, electronic fiat money, gold, bearer bonds, large stone discs, etc. It can do all of the things that each of those can. It’s the first global currency since gold. It’s the first borderless payment system ever.”

Three months later (21 August 2013), bitcoin was trading at $253 when Morehead again touted the principles behind the cryptocurrency.

Morehead wrote at the time:

“In my opinion, it’s like deciding whether to buy Microsoft back in the day at $0.20 a share. It was hard to do when the stock was just at $0.10. In the fullness of time…clearly a great trade. I believe bitcoin right now is just like that. The world’s first global currency since gold and the world’s only borderless payments system (frictionless to boot) at a market cap of $3bn? Now that Silk Road is gone, a new wave of sophisticated investors are entering.”

Pantera says that if we look at a chart that plots Bitcoin’s price since July 2010 in log scale, we would see that the Bitcoin price shows “very consistent exponential growth”:

According to Pantera analysis, the price through the end of 2019 using the historical trend line (shown in gold) would lead us to expect a BTC price of $21,000 by the end of 2018, and $67,500 at the end of 2019, being this their current forecasts for Bitcoin.

Nica Tudor

Blockchain, Smart Contracts, and cryptocurrencies enthusiast.

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