Dan Morehead – Chief Executive Officer of Pantera Capital – said the controversial monetary policies, which the US government enforced, could create bubbles in the financial system. In his view, bond markets “manipulated” by the Fed are the real Ponzi Schemes and not bitcoin.
The Danger Comes From The Fed; not Crypto
In a recent interview for Bloomberg, Dan Morehead – Founder and CEO of Pantera Capital – warned that investors dealing with bonds “are going to get absolutely destroyed when the Fed stops manipulating the bond market.”
Many critics of the cryptocurrency industry, such as the Nobel prize winner Paul Krugman and Richard Bernstein, have stated over the recent months that bitcoin is a Ponzi scheme (a fraudulent investment scam that generates returns for earlier investors by taking money from those who enter at a later stage).
Morehead strongly disagreed with that thesis. According to him, the American mortgage bond market is the real Ponzi scheme, while cryptocurrencies could be a hedge as bubbles in that sector begin to pop:
“Governments should stop obsessing about Bitcoin and look inward. The biggest Ponzi scheme in history is the U.S. government and mortgage bond market – 33 trillion-with-a-T dollars – all being driven by one non-economic actor with a dominant position who is trading based on material, non-public information.”
