California-based Asset management firm Panthera Capital’s CEO Dan Morehead has given a statement where he believes that the world’s second-largest cryptocurrency at the moment, which is Ethereum, is going to outpace Bitcoin because of several factors including the EIP 1559 upgrade.
Ethereum Investment Proposal (EIP) 1559 which will go live tomorrow is going to make it trade more like a stable asset in his opinion. The other major factors are Ethereum’s lower environmental impact and its huge potential application in the upcoming future.
Morehead was speaking to Reuters Global Markets Forum where he acknowledged that the world’s second-largest crypto asset has to travel farther to outpace Bitcoin but it will certainly do that in the future.
“You’ll see a transition of people who want to store wealth, doing it in (ether) rather than just bitcoin,” he told.
When it came to lowering environmental impact, his point was related to mining as Ethereum 2.0 is going to reduce the mining energy and make it more energy-efficient compared to Bitcoin.
Morehead was not entirely critical of Bitcoin in his comparison with Ethereum. He predicted Bitcoin to do well and end the year between $80,000 and $90,000 which is likely to go up to $ 120,000 by this time next year and over $700,000 in the next decade.
He called increased regulatory measures and scrutiny over crypto assets good for cryptocurrency and named it a ” transition phase “.
At the time of publishing this article, Bitcoin is being traded at $38,647 while the value of Ethereum was $2511. However, when it comes to outpacing Bitcoin, Ether still has a long way to travel as the Total Market Cap of ETH is 293 billion dollars. It is less than even half of Bitcoin’s total market cap which stands at $725 billion according to the data from CoinMarketCap.
Pantera Capital itself has a huge portfolio when it comes to cryptocurrency. It manages $2.8 billion in blockchain assets as it has invested the sum in several crypto exchanges with Bitstamp and Coinbase being two of the most prominent ones.
Apart from having a large crypto portfolio, it also has a fund of $500 million in assets under the fund. CEO Don Morehead had founded it in 2003 and since 2013, this hedge fund specializes in cryptocurrencies.