Bond markets are ponzi schemes where investors will be left holding the bag once the the lights come one, according to Dan Morehead, CEO of Pantera Capital.
Bond investors "are going to get absolutely destroyed when the Fed stops manipulating the bond market," Morehead said Tuesday, according to Bloomberg.
Instead of focusing all of their regulatory energy on cryptocurrencies like bitcoin, governments around the world should look at systemic issues that are causing economic volatility.
“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," Morehead said.
While he raises concerns about government intervention in cryptocurrencies, Morehead sees bitcoin as being too big to manipulate.
“The bitcoin market is way too big to be manipulated,” he said. “Bitcoin trades on hundreds of exchanges in dozens of countries. Bitcoin’s daily volume is 1,000x as much as GameStop, which trades on just one market in just one country.”