Dan Morehead, CEO and founder at investment firm Pantera Capital, is convinced that DeFi will outperform Bitcoin in the next five years.
In a recent interview with Cointelegraph, Morehead pointed out that despite the poor performance of Pantera’s altcoin funds in 2019, the situation has flipped in the last few months due to the explosive growth of decentralized finance protocols and tokens.
At the end of August, Pantera’s digital assets fund was up 123% year to date. “The world has woken up to DeFi and capital has flowed into the space”, he said.
According to the fund manager, Bitcoin has already established itself as digital gold and an effective store of wealth. Therefore, he believes its upside potential is relatively limited.
“It maybe could go to a million (…) but that’s really the edge of possibility because you’re getting into a number that’s $20 trillion in all money on Earth is only $100 trillion”.
On the other hand, DeFi is still at its infancy and largely undervalued considering its potential to disrupt the traditional financial sector – hence its huge potential for appreciation. He said:
“It’s much more likely that the entire DeFi space goes up a 100x over the next five years than Bitcoin.”
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