Chief executive officer of Pantera Capital and longtime macroeconomic investor Dan Morehead sounded an alarm on what he called bubbles created by the Federal Reserve’s efforts and says digital assets should be bought instead.
Pantera’s first cryptocurrencies investment was in 2013 when Bitcoin price was trading at only $65. Bitcoin hit an all time high of $69,044 on November 10th this year.
Morehead now invests in a wide range of digital assets and his company has $6.4 billion in assets under management, according to its website.
Bond investors “are going to get absolutely destroyed when the Fed stops manipulating the bond market,” he said in a note on Tuesday. Morehead argued that Bitcoin and other crypto assets could be a hedge as bubbles in debt markets begin to pop.
“Governments should stop obsessing about Bitcoin and look inward, the biggest Ponzi scheme in history is the U.S. government and mortgage bond market – 33 trillion-with-a-T dollars – all being driven by one non-economic actor with a dominant position who is trading based on material, non-public information.” he stated.
The Bitcoin market is way too big to be manipulated, Bitcoin trades on hundreds of exchanges in dozens of countries. Bitcoin’s daily volume is 1,000x as much as GameStop, which trades on just one market in just one country.” he stated.
The FED gave green light to the US Treasury Department to print trillions of dollars, according to many would cause further monetary issues, including rapidly growing inflation!
In fact, several months later, the inflation rate in the States surpassed 6% for the first time in decades. A few days ago Nayib Bukele (El Salvador’s President) urged the American authorities to stop printing such a vast amount of dollars out of thin air since the US national currency is used in his country as legal tender. Nayib Bukele made the headlines in the world, when El Salvador has become the first country in the world to officially classify Bitcoin as legal currency. Congress approved President Nayib Bukele’s proposal to embrace the cryptocurrency, with 62 out of 84 possible votes in june this year.