Morgan Creek Capital Management – Cryptos Will Replace Fiat Money
While many of the Wall Street firms are waiting for regulations to be put in place, Morgan Creek Capital Management have already gone ahead in cryptocurrency investing. The firm has entered into a partnership agreement with Bitwise Asset Management, which assists institutional investors to invest in blockchain assets indirectly through Digital Asset Index Fund. The fund tracks top ten largest crypto currencies in the market.
In its latest quarterly crypto market outlook, Morgan Creek brings to light its conviction that fiat currencies will be supplanted by cryptocurrencies and recommends that investors should not wait further to enter this asset class regardless of Wall Street gurus’ gloomy reports.
Cryptocurrencies are in early stages
In the market outlook and evaluation report released in 2Q18, the asset manager makes the courageous claim that fiat currency will be completely replaced by cryptocurrency in the future.
In its report, Morgan Creek says
“In our view, blockchain is a truly revolutionary technology that will disrupt the entire Chain of Value in the same way that the Internet disrupted communication and commerce. [We] believe money as we know it is going away and it will be replaced by the Internet of Money (or Internet of Value). [We] believe Bitcoin (and other cryptocurrencies) are here to stay and they are just getting warmed up.”
Regardless of claims by skeptics of decentralized crypto currencies that Bitcoin is a scam and that the “crypto bubble” has burst, Morgan Creek trusts that the latest decline in crypto currency prices (and future declines) “will cast out to be hardly visible zig-zags on a long-term chart as cryptocurrencies substitute fiat money over the coming decades.” Although governments and financial institutions are the most affected, Bitcoin has entered the mainstream discussion more than ever before.
Furthermore, individuals are transferring a portion of their fiat money into its cryptocurrencies, the report claims.
Morgan Creek Predicts Bitcoin at $500,000 by 2024
The report further states “Bitcoin prices are following a 2014 Logarithmic Non-Linear Regression model [and] that model predicted the $10,000 price this past November and shows how Bitcoin will move the next 10X to $100k over the next three years.”
“New technological advances like the Lightning Network could speed adoption rates and raise the slope of the curve, but the Parabolic Growth Model points to network values of $22k by the end of 2018, $41k by the end of 2019, $75k by the end of 2020 and $100k by the middle of 2021.”
The asset manager also called Bitcoin’s entry as “Gold Equivalence” and anticipates market cap to reach $8.4 trillion within a decade. Additionally, the developments in the recent weeks, including ICE plan to launch its cryptocurrency exchange ecosystem and Northern Trust auguring its cryptocurrency custodian services, indicate a continuation in the growth of the Bitcoin network.
Nevertheless, Bitcoin’s price is not expected to skyrocket in a single day. Morgan Creek has stated that the migration of talent from traditional businesses to cryptocurrencies and blockchain technology is another indication that digital currencies are not going to disappear.
To summarize, Morgan Creek Capital Management said
“[We] believe that continuing to build an allocation to cryptoassets and digital securities will add value to portfolios (both in terms of return enhancement and correlation benefits).”
It is needless to say that Morgan Creek’s price forecast and optimistic review should be taken with a pinch of salt as the firm’s report is basically a call-to-action to its prevailing and potential clients to purchase cryptocurrencies through its recently launched Digital Asset Index Fund.