Pantera Capital CEO Dan Morehead expressed his belief that in the coming decade, geopolitical adversaries of the United States, such as Russia and China, will begin to form their own Bitcoin reserves. He explained that this process is being accelerated by the gradual weakening of the US dollar’s position as the world’s primary reserve currency, as well as the growing popularity of Bitcoin.
This is reported by Business • Media
New Trends in Reserve Formation
In the Empire podcast, Morehead emphasized that the status of a global reserve currency changes approximately every 80-100 years. In the past, this role was played by gold coins, escudos, the British pound, and currently, the US dollar. However, according to the CEO of Pantera Capital, more and more countries are seeking alternatives to the dollar due to high inflation risks, eroding trust, and political and trade confrontations.
“No one has lasted longer than 100 years. And you can already see that some countries are moving towards investing their reserves in Bitcoin,” Morehead noted.
He believes that the first to allocate reserves in Bitcoin will be the Gulf countries, followed by nations that are geopolitically opposed to the US, including Russia and China. Morehead emphasized that, for instance, China currently holds about $1 trillion in US Treasury bonds, which could be blocked or canceled, making investments in Bitcoin significantly safer for such states.
Bitcoin and Gold as Alternatives to the Dollar
Dan Morehead views Bitcoin and gold as key alternatives to the dollar. In his opinion, the current rise in gold prices is largely explained by active purchases from various countries looking to diversify their reserves. Morehead pointed out that the macroeconomic situation in the world remains tense: inflation remains high, the fiscal policies of many states are too liberal, and trust in the dollar is gradually weakening.
He also noted the low correlation between Bitcoin and high-risk assets, including the S&P 500 index, explaining this by the reduction of excess liquidity in the market. Morehead predicts that over the next 12-18 months, the US dollar will continue to weaken, which will drive further increases in the value of Bitcoin.