Why 2025 may be the most glorious year for cryptocurrencies

Source: Pantera Capital

Panteral Capital founder Dan Morehead recently discussed the development of the cryptocurrency industry in 2025 with Real Vision co-founder Raoul Pal.

Dan and Raoul have known each other for 25 years, and both have been investing in the cryptocurrency field for more than a decade. Both admit that 2025 could be a big year for the crypto industry.

The main contents of the conversation are as follows:

Macro trends affecting cryptocurrencies and Fed policies

The dialogue begins with a discussion on the impact of Fed policy on the economy and cryptocurrency markets. Dan believes that the Fed's long-term low interest rate strategy has led to significant inflationary impulses, leading to limited tools for the U.S. to cope with increasing debt and fiscal challenges.

Dan: "The Fed made a huge mistake to keep interest rates too low and for too long. Correcting mistakes is much more difficult than correcting them bit by bit...

" The U.S. is now spending more interest than defense, which is a crazy situation. Most countries will get out of the situation through inflation when facing this situation. "

The increasing debt crisis and the role of blockchain

As the global debt burden continues to increase, Dan and Raoul highlight the potential of blockchain as a replacement for traditional financial systems. They discussed Bitcoin as a “stateless currency” that can be used as a tool to hedge against mismanagement of currency.

Raoul: " Most people don't realize this, but governments around the world are devaluing the currency about 8% every year. Bitcoin can hedge against this devaluation ."

Dan: "We see the separation of currency and country. Bitcoin is a currency that can do everything other currencies can do, but not under the control of any country."

Bitcoin Growth and Institutional Adoption

The discussion highlighted the growing interest in Bitcoin due to regulatory progress and ETF approvals. Dan predicts that institutions will increase their allocation to Bitcoin and other crypto assets in the next few years.

Dan: "BlackRock and Fidelity launch Bitcoin ETFs break the last hurdle for institutional investors. Now, no one can say 'we can't invest in Bitcoin for compliance reasons'."

Raoul: “We see Bitcoin becoming a strategic reserve asset, which is likely not only for individuals but for countries.”

Middle East and global cryptocurrency adoption trends

As sovereign wealth funds began exploring cryptocurrencies as part of their diversification strategy, the panel discussed the growing interest in blockchain in the Middle East.

Dan: “GCC countries realize that blockchain is suitable for their needs because they are a cutting-edge market with a lot of capital available for deployment…

“ Once the United States establishes its strategic reserve of Bitcoin, we will see other countries, especially those seeking to hedge against the U.S. dominance, follow suit. ”

Tokenization and real-world asset integration

Tokenization of assets such as real estate, Treasury bonds and commodities is highlighted as one of the most exciting areas for blockchain innovation. Dan pointed out that projects have tokenized billions of dollars in real-world assets.

Dan: “Figure offers $10 billion in mortgages on the blockchain. It’s not just saying it – it’s happening…

"Ondo is tokenizing Treasury bonds, allowing anyone with a smartphone to borrow money from the U.S. government. It's revolutionary."

Cryptocurrencies are the fastest growing frontier economy

The two spokespersons agreed that blockchain represents the fastest-growing economy in history, with the possibility of expanding from $3 trillion to $100 trillion over the next decade.

Dan: “Blockchain is a new economy. It’s like the birth of an asset class, like emerging markets and commodities in the 1990s.”

Raoul: "We're only 3%. When people ask me if it's too late, I'll tell them, 'No, it's just the beginning.'"

AI and cryptocurrency integration

The intersection of AI and cryptocurrencies is seen as a transformational area where blockchain can enable decentralized governance, ownership and incentive data sharing for AI applications.

Dan: “AI agents need native financial systems, and blockchain is it. Decentralization makes artificial intelligence more responsible and accessible…

“Blockchain motivates people to share private or valuable data for AI models and create an economic value layer for AI.”

Generational changes and the socio-political impact of cryptocurrencies

Dan noted that the demographic structure adopted by cryptocurrencies is changing, with the younger generation driving the industry’s growth and even having a significant impact on the outcome of the U.S. election.

Dan: “Young people love cryptocurrencies. This is how they accumulate wealth in a system that makes them unable to afford housing and other opportunities…

“ Cryptocurrency is no longer a partisan issue. 50 million Americans own cryptocurrency, and opposing it is political suicide. ”

Looking to the future

Dan and Raoul ended up reflecting on the opportunities in the cryptocurrency market and stressed that despite the growth so far, the journey has just begun.

Raoul: "This is the biggest macro opportunity ever. Our mission is not to mess it up."

Dan: “Blockchain is still in its first phase. Most institutions have zero configurations, but that is changing rapidly.”