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Chapter cryptocurrency hedge Fund Pantera Capital Dan Morehead (Dan Morehead) said that we all need to calm down about the current cryptogamy. He stated this in a conversation with the host of the podcast Unconfirmed Laura Shin (Laura Shin).

Morehead reminded the audience that these periods bear market criptural experienced before, and the current market situation bodes well for the future of bitcoin and the blockchain.

“In fact, this is the second cryptoim. In 2014-2015 we have already seen this period. In the previous kryptonia I’m more worried about whether the blockchain to work. Was also real regulatory risks. In the current situation the fundamental basis of a lot stronger than they were in kryptonia 2014-2015”, – said the head of Pantera Capital.

According to Morehead, Pantera Capital Fund makes investment decisions based on the prospects of five to ten years, so his strategy is not affected by daily price fluctuations.

The expert is confident that institutional investors will eventually come to the stock market. However, he acknowledged that the current drop in prices keeps them from doing so.

“Talk about the coming wave of institutional capital, which will come to the stock market, was carried out over the years. I think that now we have the necessary conditions for that to happen. Institutional investors want to be well known and regulated custodial service. And we really haven’t had this in the past,” said Morehead.

In his opinion, to attract large investors to the market need custodial services at the institutional level, and they already have Bakkt and Fidelity are actively working in this direction.

Because institutional investors are risk averse, they do not start betting on the bitcoin until the price rises. They have a different approach than “buy low, sell high,” said Morehead.

As investors the world level have a herd mentality and they need external prompts about when to invest in an asset, you expect that they will invest big money in cryptocurrency before prices start to rise, not worth it.

“It is likely that a large wave of institutional capital will not come until prices start to rise. We have seen this in the previous two cycles. Kryptering even more extreme than usual. The flow of funds to our bitcoin Fund was largely Pro-cyclical,” said Morehead.

“We launched the Fund, when bitcoin was worth $ 65. Until the price reached 400 or 500 dollars, came only a few investors. Then when the price rose to $1000 in 2013, we received a huge influx. And when in the 2014-2015 year on the market reigned cryptoseal, he’s exhausted,” he added.

Because currently bitcoin is in a long downtrend, then it is understandable why many investors “sitting on the sidelines” and wait for conditions to improve.

The question of how regulatory uncertainty affecting the industry, Morehead noted that the IRS (IRS) and the Commission on trade commodity futures (CFTC) has outlined its position by publishing the relevant statements. At this point the major delay is caused with the securities and exchange Commission (SEC).

“The SEC is now in the process of determining which standards should be set regarding what to count and not be considered securities. In the next 6-9 months it will be solved. As soon as the situation becomes clearer, investors and exchanges will be easier to learn how to deal with these types of assets,” – said the head of Pantera Capital.

We will remind, in December, the famous American venture capitalist Jim Breyer (Jim Breyer) said that the cryptocurrency is close to the transition to a state of “nuclear winter”. Despite this, he looks towards the future of technology.

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