Investor Dan Morehead warns of an impending halving of the Bitcoin price until the end of the year. Many speculators currently want to take their profits with them, he believes, which is why they are pushing value with their sales. The market is extremely risky, according to the CEO of Pantera Capital during an interview with television channel CNBC.
Morehead believes in a rapid drop in the price of the crypto-currency Bitcoin by up to 50%. After this adjustment, the price was back to the previous month's level. In the long term, however, this digital currency has the opportunity to rise back to 18,200 US dollars.
"For the blockchains Bitcoin, Ethereum and Ripple we are in the first round of several decades. We are still at the beginning of development, there are still some extreme ups and downs to be expected, "
He recently told the CNBC moderators. The theme of the program was the current run on the coin currencies. When asked about the value, he told CNBC that Bitcoin was of use to many individuals who successfully bypassed banking. Basically this is a very complicated, extremely fast growing and high risk business. In the past, the value had doubled within six weeks. Apparently, some investors believe that this flight goes on forever. In fact, the issuance of new futures last weekend and two weeks ago at two US exchanges was able to further increase the price.
But as you can see at the moment, the price is not always upwards, according to the analyst. Next week, according to Morehead, a very brutal cleanup will begin, with the value going down to half. In the long run, blockchain technology will gain greater acceptance among the ranks of industry, which will also boost confidence in Bitcoin. Then there is a good chance that the value could stabilize at about $ 18,200 in the long run. Basically you have to spread the risk by putting on different currencies. Even with stock investments, nobody would speculate solely on Google or solely on the value of the Apple stock, but always put together a portfolio consisting of several companies from different areas, to minimize potential losses. So, if you're just riding a horse, you're in full swing, whether in stocks or crypto currencies, Morehead says.
Of course anyone can create their own crypto currency with the open source software used, but that would not be the solution to the problem. The challenge is to communicate to the masses of users that they use them as well. That could be transferred to the internet. If someone succeeds in convincing the majority of surfers to visit another website, it automatically becomes more valuable than Facebook. But that's exactly the problem with new portals as well as with new crypto currencies: at first nobody knows them. The threat of price erosion until the beginning of January, a new cryptocurrency would not change one way or another.
Background: Dan Morehead previously worked as a trader and hedge fund manager among others at Deutsche Bank, Bankers Trust and Goldman Sachs. Then he founded the trading platform Atriax, which was closed in 2002 again. Later, he was involved in the founding of Bitstamp and founded in 2003 the crypto-specialized investment company Pantera Capital based in San Francisco, which he still leads as CEO. He is said to have bought his first bitcoin when it was worth a staggering $ 72 apiece. Lots of experience in the sector or not. It remains to be seen critically whether his prophecies will actually prove true.