Macro economist Raoul Pal states that in five years, the price of bitcoin will hit $1 million. Instead of because the world is collapsing," he attributes the price spike to adoption by vast pools of investors and the "enormous wall of money coming into bitcoin.
$1 million in 5 Years of Bitcoin
In a podcast interview with Daniela Cambone of Stansberry Analysis, former hedge fund manager Raoul Pal shared his perspective on the economy, gold, and bitcoin last week. After leaving Goldman Sachs, Pal previously co-managed the GLG Global Macro Fund in London, where he co-managed the hedge fund distribution sector in Equities and Equity Derivatives in Europe. He then formed Real Vision Group and Global Macro Investor.
"He began, "The economy will not recover for much longer than we expect. "There's no stimulus around and in Europe, the U.S. and elsewhere, we have more issues to come.
And companies don't have enough cash flow, they're closing in droves, and that's what I called the insolvency process." The former manager of the hedge fund added, "The only response is more from the central banks, so I began buying more and more bitcoin.
His portfolio used to be divided evenly between U.S. dollars, gold, bonds, and bitcoin. "During the podcast, however, he revealed that his bitcoin allocation is "possibly above 50 percent now While recognizing that he is exposed to a 50 percent downside by this BTC allocation, he said it is okay for him because the upside is so much bigger.
Pal clarified that his cash assets were decreased and the funds were placed into bitcoin. My trading positions are relatively small because I don't think there's as much chance as bitcoin has in the space. So really a bit of cash, some gold, and bitcoin, mostly. And I'm also playing with the concept of purchasing more bitcoin through selling my gold,' shared the founder of Global Macro Investor, elaborating:
I don’t dislike gold but when you get to the macro opportunity … if bitcoin starts breaking out of these patterns that it’s been forming, it is going to massively outperform gold. I’m 100% sure of that so in which case why would I have the gold allocation.
The former manager of Goldman Sachs demonstrated that he is not afraid of hyperinflation, default or anything else," adding that he is interested in individuals "adopting a different monitoring unit for their savings and reserve assets."
Pal has a bullish Bitcoin price outlook, predicting that within five years, it will be $1 million. He clarified:
It’s going to be not because the world is collapsing [but] it’s because there’s gonna be adoption by the real large pools of capital.
He sees the adoption of bitcoin taking place in waves, beginning with retail and expanding into hedge funds. "He noted, however: "We're not there yet. You can't prime the bitcoin assets that split, but that's coming. In space, we are beginning to see family offices. Next are the institutions, the endowments, the pension plans, and within that you'll find some government... suddenly say we've allocated 5% in bitcoin. He thinks it's going to be a nation like Nicaragua or one with constant currency devaluation problems. When it happens, he says it's going to be another huge story," much like the Microstrategy story of shifting a treasury reserve of $425 million into bitcoin.
"Stressing that the pipes are not there yet to allow large institutional investors to invest in bitcoin, he said, "but that's coming... it's on the radar screen of everyone and there are a lot of smart individuals working on it.
From what I know, from all of the institutions, [and] all of the people I speak to, there’s an enormous wall of money coming into this.
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