Pantera Capital’s hedge fund has supposedly underperformed, suggesting that it is less in value compared to Bitcoin’s price. The CEO, Dan Morehead has recently released his findings through a letter, which Bloomberg was first to report. It appears that his letter addresses current news regarding cryptos, continuing price drops and Pantera Capital’s overall performance. Morehead also shared a few opinions of his own, in regard to Warren Buffett.
According to his reporting, Pantera Capital’s fund dropped in value by 26% in May alone, and a gross 50% drop by year-to-date. This clearly comes of no surprise as Bitcoin, which was once sitting at a high of USD$20,000, now has been cut down to the approximate USD$6,700.
To add to the list of negatives, Bitcoin’s price experienced yet another drop due to the most recent, South Korean crypto exchange, Bithumb hack. Morehead also added that the fund’s decline is a result of reduced shares of “Dash, Waves, Bitshares and OmiseGO”.
Morehead’s Views On Warren Buffett’s Stance On Crypto
Buffett was never a fan of cryptocurrencies and continues to perceive the digital asset in a negative light. He even described Bitcoin as being a “rat poised square”. People were quick to react to the well-known investor’s comment, suggesting that he is “old-schooled” and is outdated on investment knowledge. It appears that Morehead also had his part to contribute by saying:
“Buffett avoided the dot coms, but he also missed Amazon, Facebook, Google, Netflix, et al. […] If Berkshire buys Bitcoin as quickly as Apple – it will be in 2045. Buckle in.”
The comment on Berkshire Hathaway, the firm Buffett is CEO of, was to pinpoint the fact that the firm purchased 75 million Apple shares, as well as an additional, 165.3 million shares that they owed in 2017. Perhaps, Morehead believes that the firm will be late once again in investing and will eventually do so in cryptos.
Despite all the negative trends on cryptos at the moment, Morehead remains hopeful that the entire market is certain to succeed. He also went as far as saying that Bitcoin was a “screaming buy”, with the possibility of making the entire crypto market worth trillions.
As for his predictions for 2018, Morehead believes that Bitcoin will soon bring big gains for investors, even bigger than what December 2017 proved of its potential.