Crypto Hedge Fund Pantera: Bitcoin will Benefit from Libra’s Halo Effect
Pantera CEO Dan Morehead lauds Facebook’s SDR type strategy to collateralize Libra with the biggest currencies
Crypto Hedge Fund Pantera CEO Dan Morehead said Libra and Bitcoin shared certain core values. Those values are Money, Justice, and Freedom.
These values are likely to provide the substratum for a “movement towards democratized finance,” he said, stressing that financial inclusion via inexpensive and reliable financial services is the “promise of the blockchain.”
Stability via backing of the major currencies
Morehead also pointed out that Facebook drew a page out of the IMF book by backing Libra with the four oldest and most widely used global currencies, namely the U.S. dollar, the British pound, the Euro, and the Japanese yen.
The system would mimic the IMF-sponsored Special Drawing Rights (SDRs). Designers intended SDRs to operate as an international reserve currency. Morehead said that people didn’t use it due to the limitations to transactions.
“Libra is designed to be used,” says Morehead.
According to Morehead this collateralization would also make Libra less volatile, and in the long run, “this could represent something larger — Libra might satisfy the previously-unanswerable complaints about USD hegemony.”
Crypto Hedge Fund Pantera sees Libra boom
Facebook’s global reach via 2.4 billion of its own and WhatsApp users should bolster the core USP of Libra. This could ultimately lead to greater familiarity and adoption for cryptos as a whole.
“We believe that the launch of Libra will have a large net positive effect on Bitcoin and other cryptocurrencies,” says Morehead. “Increased competition will breed the strongest networks that provide real benefits to society. There isn’t one right way to achieve this.”
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