Pantera Capital Head: US Geopolitical Rivals Will Start Converting Reserves to Bitcoin

CEO of investment company Pantera Capital Dan Morehead stated that in the next ten years, Bitcoin will begin to take a place in the national reserves of countries, including those that are opponents of the US on the world stage. He discussed this on the Empire podcast.

According to Morehead, the world reserve currency historically changes every 80–100 years: from gold coins and escudos to the British pound and the modern American dollar. “No one has held this status for more than a century. And it is already evident that some countries are starting to convert part of their reserves into Bitcoin,” he noted.

Morehead predicted that the first to take such a step will be the Gulf states, followed by the geopolitical rivals of the US, including Russia and China. “If China holds about $1 trillion in US bonds, which can be frozen or annulled, it makes sense to look for alternatives. Over the decade, such countries will gradually move into Bitcoin and cryptocurrencies,” he emphasized.

The head of Pantera Capital also pointed out that not only Bitcoin but also gold is becoming an alternative to the dollar. According to him, the rise in precious metal prices is largely due to active purchases by states.

Morehead added that the dollar is losing ground due to high inflation, liberal fiscal policy, as well as political and trade conflicts. In these conditions, investors are looking for new forms of “reliable” reserves. “Gold and Bitcoin meet these requirements due to their stability and predictability,” he noted.

He also drew attention to the fact that the correlation of Bitcoin with high-risk assets, such as the S&P 500 index, remains low. In his opinion, this is what makes cryptocurrency a promising asset amid declining confidence in the dollar.

According to the forecast of the CEO of Pantera Capital, in the next 12–18 months, the dollar will continue to weaken, and Bitcoin will gain new growth momentum.