Dan Morehead, CEO at prominent hedge fund Pantera Capital shared his take on the current Bitcoin environment, holding that the price would rise within the next year. However, outlined some challenges in front of Bitcoin miners.
“Much Higher Than It Is Today”
Despite the fact that Bitcoin is in for its worst week in four months, CEO at Pantera Capital Dan Morehead holds that the cryptocurrency will grow in value a year from now.
Speaking to CNBC’s Fast Money, Dan Morehead noted:
The price could go down but I really do think a year from now it will be much higher than it is today.
His words come as a beam of hope as the world’s first and foremost cryptocurrency has lost roughly around 12 percent of its value in less than 10 days. Bitcoin currently trades at $6,503.94 marking a slight 2.81 percent increase in the last 24 hours according to CoinMarketCap.
Morehead recently commented on the recent decision of the SEC to delay the ruling on the much anticipated commodity-backed VanEck/SolidX bitcoin ETF. He emphasized that it’s important to put things into perspective:
The main thing to remember is that bitcoin is very early-stage venture, but has real-time price feed — and that’s a unique thing. People get excited about the price and overreact.
The Chief Executive Officer of Pantera also reiterated on the fact that Bitcoin mining doesn’t really have any fixed support, hence making actual calculations of the costs of mining fairly difficult:
I think it is very difficult to ever do real world calculations of the cost of mining. All these are sunk costs and people have built these enormous data centers with computer chips that are doing the mining. I think it is unlikely to have any fixed support there.
What this suggests is that companies “might run a loss” for a prolonged period of time, banking on the hopes that the price would increase.
Do you think Bitcoin will soon bounce back up? Don’t hesitate to let us know in the comments below!
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