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Dan Morehead, CEO of cryptocurrency investment firm and hedge fund Pantera Capital, says that leading digital assets like Bitcoin (BTC), Ethereum (ETH) and XRP will challenge the supremacy of the US dollar in the long term.
In the latest episode of Real Vision Finance with macro investor Raoul Pal, Morehead describes the current economic environment that he believes may spell the beginning of the end of US dollar dominance.
“In fiscal policy, we have seen a stimulus of 10% of GDP signed days before a new stimulus plan has been discussed. These are just numbers that are literally off the charts. I think it is almost certain that the United States will come out of this crisis with more debt than after the battle against the Great Depression or the Second World War. “
Morehead notes that the change from the dollar to a new reserve currency will occur over the course of many years.
“It is a fact of the world that the dollar is the reserve currency right now. That has changed every 80 or one hundred years in the last six centuries …
I believe that in the long term, and this is decades, cryptocurrencies will become reserve currencies, be it Bitcoin, Ethereum, or Ripple. Ultimately, some of them will be reserve currencies, but governments are very slow to change, so I think it’s a very slow progression from 10 to 20 years. “
When asked which cryptocurrencies have staying power, the executive of the cryptocurrency investment firm says that only a handful of tokens will make the cut.
“I think there will be a single digit of very important blockchains …
It’s already starting to form where you see that Bitcoin hasn’t really changed much but that it’s really good at storing wealth … You see Ethereum is really dynamic, and they already have Ethereum 2.0 … So Ripple has taken an enterprise SaaS version of this and trying to work with all the banks … I think there is room for eight or ten of those long-term, long-term use cases. “
Morehead also expects a resurgence in crypto after institutional investors assess the damage and see that the current economic crisis offers new opportunities.
Looking at the current crypto strategy at Pantera, Morehead says the company has temporarily sold a significant portion of its altcoin holdings in the near term, expecting Bitcoin to return within a year.
“The only conclusion we can come to for the cryptocurrency is that within six to nine months it will be very positive.”
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