Given the recent bitcoin price streak, it would not be surprising to see investment companies make the switch to blockchain technology all of a sudden. Pantera Capital has no specific plans to do, and they will continue to focus on Bitcoin and other digital currencies moving forward. Price movements in the Bitcoin market are very predictable, and this negative pressure was to be expected sooner or later. The company announced a new US$25m fund to be used for Bitcoin startups and platforms.
Pantera Capital Launches New Bitcoin Fund
Company CEO Dan Morehead is not overly concerned about the recent bitcoin value decline. Nor should he be, to be fair, as this decline was expected. The reasons behind the crash are different than what most people would anticipate, though, as it seems Chinese regulators are exerting some pressure on the local exchanges.
For Pantera Capital, this recent Bitcoin price surge and collapse is no reason for them to change their course. A lot of investment companies would be tempted to switch from Bitcoin to blockchain investments, yet PC has no plans to do so. Their sole focus on Bitcoin and digital currencies remains unchanged, and they even announced a new US$25m fund to help more companies in the sector grow over time.
Considering the vast majority of Bitcoins have been brought in circulation already, there is no reason to believe the Bitcoin price will not go up any further. The value per BTC is appreciating, and we are still well above the early 2016 price point. Moreover, other national currencies are devaluing and causing larger issues, which will make more people flock to alternative investment opportunities over time.
Pantera Capital has made strategic investments in multiple prominent bitcoin companies over time. Their 2013 Bitcoin fund allowed for an investment in Xapo and Bitstamp. The second fund will focus on Brave and Abra. It is good to see them pay attention to vastly different companies, as there is much more about Bitcoin than just exchanges. The new fund is worth US$25m, and has attracted a lot of new partners in the process.
CEO Dan Morehead also touched upon the hurdles that hold back mass Bitcoin adoption right now. The regulatory risk remains the top hurdle, in his opinion, and the recent activity by the PBOC goes to show what type of effect regulation can have on trading activity and the Bitcoin price. However, it also appears the chances of countries banning Bitcoin become a lot smaller, which is a positive development.
It appears the future of Bitcoin investment s is still bright, even though some business models will be less successful than others. Anyone looking to set up a new centralized exchange platform will have a much harder time than a company providing Bitcoin loans, for example. Plenty of options still have to be explored, and this new Bitcoin fund will keep looking for the best investment opportunities in the cryptocurrency space.
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