Pantera Capital Has a Lifetime Return of 10,000 Percent

In 2013, Pantera Capital, a cryptocurrency hedge fund published an investor letter that seemed like a moonshot prediction at that time. In the letter, the firm said that one day, the bitcoin price will hit $5,000. At that time, the bitcoin price was trading at $104.

Fast forward 5 years and that prediction have not only come true, the entire cryptocurrency market has changed in such a way that if right now the bitcoin price was trading at $5,000, it would be considered bearish. And let’s just say that for Pantera, this bet has paid off handsomely.

The firm released the July edition of their “Blockchain Letter.” And in that letter, Pantera’s founder and CEO Dan Morehead says that even after the recent bear market, the cryptocurrency fund now has a lifetime return of 10,136.15 percent net of fees and expenses.

Considering the fact that this fund has only been operational for five years, that is an astounding number. But not every cryptocurrency fund is as lucky as Pantera to have similar numbers. There are a ton of variables that need to work perfectly to pull that off.

Funds that opened up as recently as Q4 2017 certainly had the hardest time of them all. Not only they would have to survive the massive headwinds during the first few months of 2018, many smaller funds would have to wrap it up and leave the market. But the current number of crypto funds still is at a record 312.

Since their prediction in 2013, many have been closely following what Morehead has to say. Even though there might be some instances in which his predictions were wrong like earlier this year he predicted that BTC was preparing to emerge from its current bear market. But those who followed that prediction certainly had some hard days.

But in the long-term, his predictions are almost always true. Not only that, Morehead noted that contrary to what the majority of investors tend to believe, BTC has experienced a consistent logarithmic growth since 2010. Most funds consider linear price movements.

These are linear charts that measure an asset’s value in pure dollar terms with equal distance between price levels. While logarithmic charts plot data such that there is equal distance between equivalent percentage changes.

By that metric, Morehead says that bitcoin is far less volatile than its reputation. And in the long-term, that trend line will keep going up. And by the end of 2018, bitcoin will reach a new all-time high of $21,000 and it will break out to $67,500 in 2019, Morehead says.

So if you want to become a crypto millionaire in the next 5 years, you should probably listen to what Morehead has to say. But do consult your financial planner before investing into anything. Better to be safe than losing all your life savings.

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