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Bitcoin [BTC] – Dan Morehead says now is the best time to buy

Sarah Rodrigues



Bitcoin [BTC]- Dan Morehead says now is the best time to buy
Image Source: pxhere.

In a recent interview with CNBC’S Fast Money yesterday, Dan Morehead, CEO of Pantera says that the best time to buy Bitcoin [BTC] is now. Pantera Capital has seen Bitcoin as a valuable investment and made a fortune out of BTC.

During the interview, Dan was asked about the institutional investors entering the space as a big catalyst and the way for them to invest.

The CEO said:

“I think there’s an image that there’s an On/Off switch. It’s Off now and they will flick it and the institutions will pile in. We have had institutional investors since 2013 and its a process. Obviously, risk and reward go together. A couple of years ago, there was a lot of risks but there was a lot of rewards.”

He further added:

“We have yet to get to the point. where we have an S.E.C custodian, but institutions are buying the rumour and selling the fact, -getting invested now so that in 3, 4, 5 months when the institutional quality regulated custodian that we are hearing about come on line, they will already have their positions.”

Pantera Capital Management is a firm and an investment hedge fund with concentrates mainly on tokens, projects, ventures related to the technology of blockchain, digital currency and digital assets. The company holds $1 billion in the market of cryptocurrencies.

When the CEO was asked whether he was active in trading around Bitcoin position and where does he see value in terms of the price level.

He said:

“In our view, all cryptocurrencies are very cheap right now, they are down, 65% from their highs. At the highs, everybody wants to get invested. It’s much cheaper to buy now and participate in the rally and goes, and there is a good technical indicator that we look at when the currency breaks through. Its 200-day moving average, if you buy that day and sell a year later, you make an average of 239%. It is a very simple strategy.”

Dan Morehead, runs one of the world’s largest crypto hedge funds. He is also the former head and CEO of Macro Trading at Tiger Management. He recently foretold that Bitcoin will be worth 10 or 100 times more of what it worths at the present.

AlphaSeeker, a Twitter user commented:

“Because he needs an exit….His fund is down over 50% in the last few weeks and he needs YOU to come in and BUY”

Robin Dirickx replied:

“His fund is averaging 25000% profit at the moment.”

Charles Thomas commented:

“Hilarious 🤣 but keep the fraud alive by constantly promoting it.”

traderblast commented:

“You asked ZERO hard questions of this guy. ZERO. #trading #cryptocurrency #fintech”

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Sarah Rodrigues is an intern at AMBCrypto. She is pursuing her English lit, Psychology and Journalism at St. Joseph's College. She researches extensively and writes about Cryptocurrency and Artificial Intelligence. Sarah currently does not hold any value in cryptocurrency.

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Is the scarcity principle a factor in Bitcoin’s valuation or is it just crypto white noise?

Biraajmaan Tamuly



Is Bitcoin being scarce changes the way we put forward its valuation or is it just Crypto white noise?
Source: Pixabay

The aspect of scarcity is fundamental to the Bitcoin community, with its limited availability often seen as a virtue in a world where governments have unlimited power to print fiat currencies. With the value of Bitcoin increasing day by day, the virtual asset is getting close to its saturation point.

At press time, 17,763,712 BTC were in supply, very close to the 21 million Bitcoin supply cap. However, the last BTC will be minted on 7th May 2140. That is almost 100 years from now. So, there is still a significant period of time before Bitcoin’s production halts for good.

Many in the community have suggested that Bitcoin’s scarcity has genuine value because it makes the virtual asset “deflationary.” In light of Facebook’s announcement of “Libra” coin, it has been argued that it will not generate any circumstantial threat to Bitcoin, solely on the fact that Bitcoin was scarce and Libra was not.

A recent Medium article released by Forbes summed up the scenario. It stated,

“It will take time, but Facebook will greatly accelerate the pace of teaching people about cryptocurrencies. And when this happens, more people will turn to bitcoin for one simple reason — bitcoin is scarce, while Facebook’s cryptocurrency is not.”

Another aspect that explains the importance of Bitcoin’s scarcity value is its comparison with Gold, which is also a scarce commodity. A key model that explains Gold’s intrinsic value in the market is the Stock to Flow ratio.

The S2F ratio of a commodity explains the scarcity value as it is the amount of an asset that is available to the amount that is produced annually. Moreover, the higher the S2F value of an asset, the lesser the inflation rate attached to it. At press time, Gold had the highest S2F value, but Bitcoin was close behind and it was stated that by August 2020, Bitcoins S2F’s value would be 55.2 to Gold’s 62.

However, a significant counter-argument against Bitcoin’s scarcity in the community was put forth, with none other than legendary investor, Warren Buffet, claiming that Bitcoin had no “intrinsic value.”

Recently, Peter Schiff, CEO at Euro Pacific Capital, explained that Bitcoin was not scarce due to the availability of other crypto-assets which made Bitcoin’s scarce value quite redundant since crypto assets, with better properties and characteristics, could be created anytime.

The argument was widely opposed by a majority of the community, with certain crypto-enthusiasts deciding to respond to the post. Twitter user, @Sisko8, said,

“The Mona Lisa is not really scarce, as there is an infinite supply of other paintings with identical or superior painting techniques that can be created out of 3$ paint and canvas, including photocopies of the Mona Lisa.”

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