Morgan Creek Highlights its Belief that Fiat Currencies Will be Replaced by Cryptocurrencies
Morgan Creek Capital Management, LLC is an SEC-registered investment adviser providing investment management services to institutional and qualifying clients such as endowments, pension plans, foundations, and family offices. They provide customized investment solutions to clients in need of a targeted investment program, as well as discretionary strategies to assist clients in building investment programs based on the University Endowment Model.
In a partnership with Bitwise Asset Management, the asset manager provides access to blockchain assets for institutional investors through its Digital Asset Index Fund, which tracks the top ten largest cryptographic assets in the market.
When they were revising the recent quarterly outlook, they highlighted its belief that fiat currencies will be replaced by cryptocurrencies and suggests that investors should get involved in this asset class despite Wall Street pundits’ claims of a bubble bursting.
Their report states,
“In our view, blockchain is a truly revolutionary technology that will disrupt the entire Chain of Value in the same way that the Internet disrupted communication and commerce. [We] believe money as we know it is going away and it will be replaced by the Internet of Money (or Internet of Value). [We] believe Bitcoin (and other cryptocurrencies) are here to stay and they are just getting warmed up.”
Although authorities pushback most affected by this disruptive technology, namely financial institutions and governments, bitcoin has entered the mainstream conversation more than ever before. Moreover, more and more individuals are moving their money from fiat currency into its cryptographic counterpart, thus adding to the digital currency’s network effect the report claims.
Bitcoin At $500,000 By 2024?
“Bitcoin prices are following a 2014 Logarithmic Non-Linear Regression model [and] that model predicted the $10,000 price this past November and shows how Bitcoin will move the next 10X to $100k over the next three years,” the report continues.
The asset manager even touted bitcoin’s arrival at “Gold Equivalence” and a market cap of $8.4 trillion within a decade.
“New technological advances like the Lightning Network could speed adoption rates and raise the slope of the curve, but the Parabolic Growth Model points to network values of $22k by the end of 2018, $41k by the end of 2019, $75k by the end of 2020 and $100k by the middle of 2021.”
Morgan Creek also points out bitcoin’s strong portfolio diversification benefits as a reason to invest in the digital currency. Even only a small holding of one to five percent in BTC can have a significant positive impact on a portfolio, according to the asset manager.
“[We] believe that continuing to build an allocation to crypto assets and digital securities will add value to portfolios (both in terms of return enhancement and correlation benefits), whereby urging its clients to take digital assets seriously and invest in this promising new digital asset class.”