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Dan Morehead, CEO and co-CEO of troubled cryptocurrency firm Pantera Capital, recently claimed that even if Bitcoin fails as did Pets.com during from the internet bubble, the hedge fund would continue to see investors make money.

According to CNBC, Morehead’s reasoning was that cryptocurrencies are revolutionary and are here to stay. Now using Pets.com to explain his point of view, he said:

“If you had a portfolio of IPOs – one was Pets.com and the other Amazon.com – no matter what the others were. a good return. “

Morehead’s words came in a letter sent to investors. He noted that in the event that nonsense like Pets.com – which went bankrupt in 2000 – they did, then they “will probably do very well”. Using Pantera’s ICO fund as an example, he pointed out that it would still be positive for after the fund, consisting of 25 ICO, moved to a “one-figure blockchain number”, and that 90% ICOs have gone to zero.

According to the letter, Pantera’s ICO fund lost about 25% of its value last year, but it has increased by more than 200% since its creation. The long-term hedge fund’s ICO sub-fund is up 5.9% and its Digital Asset Fund 16.8%. The Pantera Bitcoin Fund has fallen 26.9% this year, but has increased by 16,000% since its inception.

According to the CEO of the hedge fund, bitcoin is the “miracle of finance”. In his letter, he advised investors to invest 1 to 2% of their portfolio in blockchain technology. He reasoned:

“I am not sure that the blockchain will return to 20,000%, but the probabilities are high enough that when you add the probabilistic weighted results, the expected value is the most asymmetric trade that I have. Have never seen. “

Morehead also revealed that he is optimistic for the ICOs because he expects their boom to be “very similar to the 1990s IPO boom,” but much more important. ICOs have recently come under pressure as the United States Securities and Exchange Commission (SEC) recently issued “dozens” subpoenas.

The example of Amazon

Morehead also pointed out the strategy of Amazon CEO Jeff Bezos with his company. Amazon was a majority investor behind Pets.com. Even though the company finally filed for bankruptcy, Bezos still created “an inordinate amount of wealth”.

This, because he “understood just how much the pre-Internet networks that preceded Bitcoin were disruptive.” Bezos’ investment strategy was to put his money in more than one dot-com company, to be sure to be exposed to the ultimate winners. Morehead added.

Amazon shares are now up more than 4,000 percent since Pets.com went bankrupt, and Bezos is one of the richest people in the world because it’s worth more $ 130 billion. As covered by CCN, an affiliate of Amazon has notably registered domain names related to Ethereum and Cryptocurrency last year.

Image from Shutterstock to photo

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