On Friday (December 11), former hedge fund manager Raoul Pal talked about the multi-trillion dollar opportunities that exist in traditional financial markets for Bitcoin and Ethereum.
Prior to founding macro economic and investment strategy research service Global Macro Investor (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 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.”
On December 11, Pal took to Twitter to explain why he is so bullish on Bitcoin and Ethereum. Here are a few examples from Pal’s Twitter thread:
- “If bitcoin is the digital pristine collateral, the size of global gov bond market is $123trn. Pretty amazing opportunity for bitcoin.”
- “The size of the global custody system is $23 trn That will accrue to bitcoin and more likely maybe ETH.”
- “The settlements layer is over $4 QUADRILLIAN per annum Probably BTC and ETH and other blockchains, including private ones.”
Pal concluded by saying:
On November 30, Pal revealed that he was about to sell his entire gold holdings and use the money to invest in Bitcoin and Ether:
“I have a sell order in tomorrow to sell all my gold and to scale in to buy BTC and ETH (80/20). I dont own anything else (except some bond calls and some $’s). 98% of my liquid net worth.”