Billionaire Predicts Trillions in Bitcoin Reserves for China, Russia
Pantera Capital founder Dan Morehead predicts a geopolitical shift that will lead countries like China and Russia to hold significant amounts of Bitcoin. This transition is seen as inevitable due to the risks associated with US dollar-denominated holdings.
Key Points
- Morehead believes the shift will occur over a decade or two, starting with US-aligned Gulf states before expanding to countries opposing the US.
- The historical pattern of reserve currency changes every 80-100 years supports this prediction.
- China and Russia may seek Bitcoin to mitigate political risk from holding large US Treasury positions.
- Official data shows China's US Treasury holdings are at their lowest since 2008, indicating gradual diversification.
- Japan remains the largest holder of US Treasuries, but China's share is decreasing, potentially leading to alternative reserve strategies.
- In the US, initiatives like a Strategic Bitcoin Reserve could normalize sovereign Bitcoin exposure.
- Gulf governments are already exploring crypto investments, such as state-backed mining in the UAE.
- Challenges include the need for policy shifts and market structures to support large-scale Bitcoin adoption without causing volatility.
- Bitcoin traded at $112,639 at the time of reporting.
