Asset management company Pantera Capital’s Dan Morehead is saying that Bitcoin (BTC) is a better investment compared to bonds.
In Pantera’s latest Blockchain Letter, the firm’s CEO explains why the flagship cryptocurrency is the most “asymmetric” trade in a generation.
“I’ve spent my career looking for asymmetric trades – trades where the upside is many times the downside.
Obviously, bitcoin/blockchain is the most asymmetric trade in a generation.
Bonds are the polar opposite. The potential upside is only a tiny fraction of the very real downside.”
Following comments from the European Central Bank (ECB) and the U.S. Securities and Exchange Commission (SEC) that Bitcoin is a manipulated market and a historic bubble in the making, Morehead says that governments should instead look inward.
“The biggest Ponzi scheme in history is the US 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.”
Morehead says that the Bitcoin market is too big to be manipulated, citing daily trading volume as the reason and that bond investors are, in fact, the ones that may lose their investments.
“Bonds investors are going to get absolutely destroyed when the Fed stops manipulating the bond market.”
He tells investors to allocate for Bitcoin and other crypto assets to limit their risks against a bond bubble.
“Someday financial gravity will resume functioning.
If you’re an institutional investor with any bonds, but especially if you’re more like the classic 60/40 stock/bond portfolio, you might want to hedge the bond bubble with Bitcoin/crypto assets…
Buying crypto with only $3 trillion market cap seems like a fantastic hedge.”
