US’ first Bitcoin investment firm Pantera Capital celebrates 10,000% return
Bitcoin [BTC] price will hover around $67,500 by the end of 2019, according to Pantera Capital Management, a leading US-based blockchain investment firm.
In a blog post marking Pantera Bitcoin Fund’s fifth anniversary, Pantera Capital revealed that Pantera Bitcoin Fund had generated a 10,136.15 percent (net of fees and expenses) return over the past five years.
On the occasion, the San Francisco-headquartered firm shared two emails sent by Dan to investors in 2013. In the first email sent on August 21, Dan predicted that Bitcoin [BTC] will explode through $200 within 6-8 weeks. At the time, Bitcoin [BTC] was at $104.48.
Read the emails for yourself.
Pantera predicted Bitcoin will shoot through $200 in 2013
Sent: Wednesday, August 21, 2013 12:56 PM
Subject: Bitcoin Forecast V
I wanted to share my strong conviction that bitcoin is about to melt-up. (Much of the logic is in the previous emails.) I recognize that by normal securities market standards this statement sounds insane: I believe bitcoin will explode through $200 within the next 6–8 weeks.
I was discussing bitcoin with an investor yesterday and he replied somewhat dismissively “It’s just like buying gold”. No, it’s like buying gold in 1000 B.C. 99% of the financial wealth has yet to address bitcoin. When they do, bitcoin is either going to be worth zero or $5,000 /BTC. The current market price of $100 implies only a 2% chance bitcoin succeeds. I think it’s north of 50% chance that the world adopts a global currency/payment system in which free cryptography replaces the very expensive “trust” charged by banks/VISA-MasterCard/Western Union/PayPal/etc. Bitcoin dominates cash, electronic fiat money, gold, bearer bonds, large stone discs, etc. It can do all of the things that each of those can. It’s the first global currency since gold. It’s the first borderless payment system ever.
If you plan to invest/invest more in bitcoin, it’s my opinion that “now” is better than “later”. For those that have a “half position” on now, I sense two possible scenarios a year down the road:
We split a bottle of wine over good stories of how the Bitcoin project seemed so promising but shit, it just didn’t work. We’re each out a small fraction of our net worth. No tears.
If it’s trading at $5,000…might need something stronger than wine to erase the feelings of regret.
Please let me know if and when you plan to invest. We can cut a NAV daily if needed.
‘Investing in Bitcoin right now is like investing in Microsoft when it was $0.20 a share’
In November 2013, Dan shot another mail to investors when Bitcoin was at $253.69. He drew parallels between Bitcoin investing and buying a share in Microsoft when it was $0.20. Well, investing in both of it had not been a bad decision.
Sent: Wednesday, November 06, 2013 2:58 PM
Subject: Bitcoin Melt-Up
Quick note for those thinking about timing entry:
I helped our Pantera Bitcoin Fund execute a million dollars overnight. The buying pressure on bitcoin was intense. Bitstamp’s 30-day volume is 4x what it was in July. Their overnight volume set a new record $13mm — 10x a typical day in a few months ago. They, Mt.Gox and BTC China each have done $13mm overnight. The total market is rallying on $50mm volume. In July bitcoins averaged $5mm per day.
…In my opinion, it’s like deciding whether to buy Microsoft back in the day at $0.20 a share. It was hard to do when the stock was just at $0.10. In the fullness of time…clearly a great trade. I believe bitcoin right now is just like that. The world’s first global currency since gold and the world’s only borderless payments system (frictionless to boot) at a market cap of $3bn? Now that Silk Road is gone, a new wave of sophisticated investors are entering. It feels like it’s happening. A melt-up which could be orders of magnitude.
In the blog post, the company says bitcoin’s growth, based on its price history since July 2010, was consistent and exponential. If the historical trendline is taken as a guide, the projected price of Bitcoin is at $21,000 by 2018 end and $67,500 by 2019 end.
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