Dan Morehead is more conservative in his Bitcoin price predictions than his firm Pantera Capital, though both agree that it will hit $100,000.
Pantera Capital is the oldest Bitcoin investment firm in the United States. When the company’s founder, Dan Morehead, was asked to make a Bitcoin price prediction during a recent interview, he first mentioned an investment letter published by the firm. In this letter, based on the stock-to-flow model, the firm made the bold prediction that Bitcoin will hit $115,000 by August 2021.
Stock to flow model. Source: Glassnode.
Morehead expects Bitcoin to keep growing
Morehead thinks this is still possible, despite the fact that in just one year, the asset’s price would have to increase to nearly 10 times its current value. Yet, his personal prediction is a little more modest, he said:
“My common response is it’s been growing at 209% for nine years, I think it’s going to grow at least 209% over the next couple years and that puts you at $100 000, probably in two years; but I do think that will happen.”
If Bitcoin continues to grow at 209% annually, then it will reach the $100,000 mark in 1.92 years. If it were to reach $115,000 in just one year, that would require a 900% annual growth rate.
Morehead also noted that he is tired of skeptics who constantly pose the question “What is Bitcoin’s killer app?”. In his opinion, Bitcoin itself is the killer app and its primary use case is a store of value. Bitcoin does it better than gold, which has a market capitalization of $9 trillion, purported Morehead.