Dan Morehead, the CEO of Pantera Capital, one of the first cryptocurrency hedge funds in the US, spoke about Bitcoin and its use case during an interview with BNN Bloomberg. He also spoke the current problems prevalent in the financial system which can be solved by the Bitcoin and other cryptocurrencies.
Morehead started off by speaking about why the cryptocurrency industry is still worth the attention. He stated that the a disruptive technology is categorized as a killer and that “Bitcoin is a serial killer”. Nonetheless, the CEO stated that the cryptocurrency is not “very good” at the moment, but it is great for cross-border money movements. He added:
“It’s great to storing your wealth, especially if you live in a country with a depreciating currency or capital controls very popular. So it’s very good at some things. Now, in over the next decades, it will get into things like buying a cup of coffee, right now, it’s very good at cross border money movement.”
Morehead went on to say that the main use case of Bitcoin was for immigrants working in some other country who want to send money back to their family. He added that using the cryptocurrency is “essentially free” and instant, which is contrary to typical remittance fees.
He further spoke about the problems in the current financial system that Bitcoin and other digital currencies are going to solve. The CEO said that there is a huge friction when it comes to sending money from one place to another, claiming that it is very slow. He added that it would be easier to grab a suitcase of cash and fly to the place as that would be a quicker way to transfer money. However, with Bitcoin, it can be sent within a few second and “essentially” for free.
Morehead continued to say:
“And so that is essentially routing around the payment rails that are very slow and expensive. And that is one way to think about it is the rest of protocols the internet, disrupted commerce, communication, almost everything else in our lives. They didn’t touch banking didn’t touch credit cards, they didn’t touch remittance. That’s what Bitcoin is doing”