Morehead said the current economic crisis may end the U.S. dollar dominance.
The CEO added:
“In the fiscal policy, we’ve seen a 10% of GDP stimulus signed days before a new stimulus plan has been talked about. These are just numbers that are literally off the charts. I think it is almost certain that the United States is going to exit this crisis with more debt than after the battle against the Great Depression or World War II.”
Morehead also pointed out that the transition from the dollar to a different reserve currency would take place over years.
“It’s a fact of the world that the dollar is the reserve currency right now. That’s changed every 80 or hundred years over the last six centuries…
I do think in the long run, and this is decades, cryptocurrencies will become reserve currencies, whether it’s Bitcoin or Ethereum or Ripple. Ultimately, some of those will be reserve currencies but governments are very slow to change and so I think that’s a 10 to 20-year, very slow progression.”
Some digital assets likely to perform well
When asked about the cryptocurrencies that are staying strong, the CEO said some tokens can make the cut.
“I think there’s going to be a single-digit of very important blockchains…
It’s already starting to shape up where you’re seeing Bitcoin not really changed very much but being really good at storing wealth… You see Ethereum be really dynamic, and they’ve already got Ethereum 2.0… Then Ripple’s taken an enterprise SaaS version of this and trying to work with all the banks… I think there’s space for eight to 10 of those use cases in the long, long run.”
Economic crisis to bring more opportunities
Morehead expected a crypto comeback as institutional investors see the latest economic crisis brings new opportunities.
As for Pantera’s new crypto policy, Morehead claims that his company has briefly sold a large portion of its altcoins in the short term. He anticipated Bitcoin to lead a comeback within one year.
“The only conclusion we can come to for cryptocurrency is that in the six to nine-month time frame it’s going to be very positive.”