On Tuesday (October 27), Raoul Pal explained why he believes that over the next 18 months it will become more and more apparent that “Bitcoin’s performance is SO dominant” that “holding any other assets makes almost no sense.”
Prior to founding macro economic and investment strategy research service GMI in 2005, Pal co-managed the GLG Global Macro Fund in London for global asset management firm GLG Partners (which is now called “Man GLG”). Before that, Pal worked at Goldman Sachs, where he co-managed the European hedge fund sales business in Equities and Equity Derivatives. Currently, he is the CEO of finance and business video channel Real Vision, which he co-founded in 2014.
In a tweetstorm sent out yesterday, Pal described Bitcoin as “a supermassive black hole that is sucking in everything around it and destroying it.” He then proceeded to explain what he means. He did so using charts that compared the performance of Bitcoin — during the past three-year period — to gold, the Nasdaq, banking stocks, bonds, commodities, G4 central bank balance sheet, silver, Amazon stock (AMZN), and apple stock (AAPL).
Pal concluded by saying that Bitcoin is the best investment/trade opportunity he has ever come across:
In the April 2020 issue of the GMI newsletter, Pal explained why he believes that Bitcoin, which he calls “the future”, could one day have a $10 trillion valuation. In that issue, Pal said that the idea of a $10 trillion valuation for Bitcoin is not so crazy:
“After all, it isn’t just a currency or even a store of value. It is an entire trusted, verified, secure financial and accounting system of digital value that can never be created outside of the cryptographic algorithm…
“It is nothing short of the future of our entire medium of exchange system, and of money itself and the platform on which it operates.”
Then, on October 7, during an interview with Daniela Cambone, Editor-at-Large and Anchor at Stansberry Research, Pal said that said that Bitcoin has a 50% allocation in his personal investment portfolio and that he is considering selling his gold to buy more Bitcoin.
“That’s has been an ongoing narrative. I’ve been involved in Bitcoin since 2012. It’s been an ongoing narrative that at the beginning of this I knew the only answer would be cut all interest rates to zero and probably negative and then massive stimulus beyond anything which we’ve ever seen before.
“So the first phase I want to be involved in Bitcoin. So, I bought into the sell-off, added to my positions, and now I’m starting to see the ship towards insolvencies and the only answer is more from the central banks.
“So, that’s why I started to buy more and more Bitcoin. Technically, the setup’s right. Obviously, we had the halving, and just the adoption phase — what’s happening with the institutions — it’s like the perfect timing…
“It’s probably above 50% now. Really, I’ve reduced cash, put that into Bitcoin. My trading positions are relatively small because I don’t think there’s as much opportunity as in Bitcoin. So, really, mainly a bit of cash, some gold, and Bitcoin, and I’m even toying with the idea of selling my gold to buy Bitcoin more Bitcoin.”
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.