Is Bitcoin the Must-Own Asset Over the Next 10 Years?

Siamak Masnavi

As the price of Bitcoin approaches $10,000, having gone up over 32% so far this year and over 175% in the past one-year period, we ask the following question: is Bitcoin the one "must-own" asset for this decade?

This article was inspired by what Raoul Pal, a former executive at Goldman Sachs, said about Bitcoin recently.

Here is Pal's bio:

"Raoul Pal has previously co-managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. He came to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. Other stop-off points on the way were Natwest Markets and HSBC. He started his career training traders in technical analysis.

"Raoul retired from managing client money in 2004 at the age of 36 and now writes for The Global Macro Investor, his flagship publication on global markets, and is a cofounder of Real Vision TV, the worlds first video on demand service for investors."

This is the thought-provoking tweet Pal sent out last Friday: 

Jeff Dorman, who is the Chief Investment Officer (CIO) at NYSE Arca (which is "the top U.S. exchange for the listing and trading of exchange-traded funds"), quickly agreed with Pal's assessment:

Another prominent member of the crypto community that agreed with Pal was Mark Yusko, Founder, CEO, and CIO of Morgan Creek Capital Management:

Back in July 2019, Pal was interviewed on episode 93 of the Stephen Livera Podcast (SLP).

Here's part of what he said in that interview:

"The flip side of this is the millennial generation. The millennial generation, if they were to buy equities at this point, they’re the most expensive they’ve ever been in all history, roughly…

"If they buy bonds, they get virtually no yields. If they buy real estate… It’s unaffordable, but even if they could, it’s almost at all time record highs.

"So what the hell does a millennial do to save for your future, when almost all assets have negative imputed returns for the next 20 years, 10 years?

"And the answer is well, you take the optionality of crypto currency and Bitcoin, because nothing else gives you that risk-reward profile where you can be wrong but you do it earlier on, you’ve still got plenty of time to accumulate wealth in other assets too. But if it pays off, it’ll pay off so spectacularly that everything will be right.

It’s basically like being given a better chance than the baby boomers got when they could buy equities in 1982, and bonds in 1982. That was a gift. That’s why they’re the richest generation there’s ever been, they were given a gift."

Finally, it might be appropriate to end this article with what Cameron Winklevoss, Co-Founder and President of the Gemini digital asset exchange, pointed out in a tweet he sent out yesterday:

 

Featured Image by "QuinceMedia" via Pixabay.com