Despite the fall of Bitcoin’s price this year, one of the hedge fund managers holding the cryptocurrency stated that even if the coin flops the way Pets.com did in the dot-com era, its investors will still benefit and make money.
The CEO and co-chief investment officer of Pantera Capital, Dan Morehead wrote a letter to clients on Friday stating that if you had a portfolio of IPOs, one was Pets.com and one other Amazon.com, it doesn’t matter what the rest were. You made a high return.
Analyzing the virtual currency
In this letter to investors, he also said that even when bitcoin was the famous Pets.com, which filed for economic failure in 2000, you are likely going to do well. The virtual currency is down now with over 38 percent in 2018 and was trading at about $8,519 as of 12:08 p.m. ET Friday.
Morehead highlighted the Pantera’s ICO Fund as an instance, which is comprised of 25 initial coin offerings, adding that that was even after going down to a single-digit number of the blockchains with 90 percent of the ICOs going down to zero.
According to Morehead’s investor letter, Pantera’s ICO Fund had lost about a quarter of its value in 2018 but has again risen more than 200 percent from the time it was incepted. Also, Pantera’s Long-Term ICO Fund is up 5.9 percent, while the Digital Asset Fund is down by 16.8 percent, and the Bitcoin Fund is also down 26.9 percent in 2018, but life-to-date is up more than 16,000 percent.
Wealth for the investors
The hedge funds across the board have for the first time since October 2016 recorded their first negative month, a down of 0.08 percent in February. This is according to the data from Prequin. Morehead pointed out to Jeff Bezos’ strategy with Amazon. This company was one of the major investors behind Pets.com, and he thinks that in spite of that failure “an insane amount of wealth.” Was created
Morehead said that the widely held investor in Pets.com assumed how disrupting the internet protocols that come before bitcoin would be.
Morehead further stated that the way out for Bezos was to invest in more than one dot-com company, and ensuring he was exposed to the ultimate winners. Shares of Amazon are up to over 4,000 percent since when Pets.com went bankrupt. According to the latest figures by Forbes’, Bezos is worth over $130 billion.