Pantera Capital Finds Bitcoin and Ethereum Insufficient Against Market Expectations

• Menlo Park-based institutional asset manager Pantera Capital believes that stablecoins will meet expectations and alleviate concerns related to cryptocurrencies.
• The asset management firm stated that stablecoins, which are typically backed by fiat currencies, are “poised to fulfill these hopes.”
• With PayPal launching its own stablecoin, Pantera Capital predicts the introduction of a new product called “PayPal 2.0.”

Menlo Park-based institutional asset manager Pantera Capital stated that Bitcoin and Ethereum fail to meet expectations and addressed stablecoins.

Pantera Evaluates Bitcoin and Ethereum

Menlo Park-based institutional asset manager Pantera Capital believes that stablecoins will meet expectations and alleviate concerns related to cryptocurrencies. In its recent report, Pantera Capital mentioned that Bitcoin (BTC) and Ethereum (ETH) have both been widely adopted but have not become electronic cash systems as many had hoped due to their notorious volatility problems.

Pantera Capital stated that Bitcoin and Ethereum have not met initial expectations for cryptocurrencies, such as peer-to-peer transfers, protection from unstable fiat currencies, or the elimination of reliance on centralized third-party service providers.

However, the asset management firm noted that stablecoins, which are typically backed by fiat currencies, are “poised to fulfill these hopes.”

Jeff Lewis, Product Manager for Hedge Funds at Pantera Capital, said, “The beauty of the upcoming stablecoin revolution is that whether we’re using a tokenized asset as an exchange medium or using a stablecoin with visible assets, we no longer have to trust that the banker or stablecoin provider is doing what they’re supposed to do.”

Pantera Capital already mentioned that it is experiencing an “explosion” in the stablecoin market, along with tokens that offer higher yields, backed by investments in the underlying money market.

PayPal 2.0 Expectation

With PayPal launching its own stablecoin, Pantera Capital predicts the introduction of a new product called “PayPal 2.0.” According to Pantera’s statement, PayPal 2.0 will gain popularity if it becomes a trust-based, transparent, and yield-generating product. Although a specific timeframe is not explicitly mentioned, Pantera Capital stated that PayPal 2.0 is “on the horizon” because market conditions will “force providers to offer money market yields to remain competitive.