Macroeconomics expert and Real Vision co-founder Raoul Pal revealed he believes it’s pointless to invest in any asset class other than bitcoin and crypto as the flagship cryptocurrency has been outperforming everything.
While speaking to Ash Bennington on Real Vision Finance, Pal said that bitcoin is the only asset class that has been seeing legitimate long-term growth when compared to the Federal Reserve’s balance sheet growth. Per his words, dividing the S&P 500 index by the Federal Reserve’s balance sheet since 2008 includes the index in a specific range.
In that range other assets such as gold, real estate and equities are also included, suggesting that the bull market that has been going on over the last few years has been aided by the Fed’s balance sheet. Bitcoin is the “only asset that’s obviously done differently,” Pal said.
The former Goldman Sachs executive added that he hasn’t been covering bitcoin because of the nascent space surrounding it or its community, but because of its significant performance over the last few years.
The point being is that it is outperforming every asset class on Earth. It’s not because I love it because it’s new and shiny, it’s because it makes everything else look pointless. I simply don’t care about value vs. growth.
Pal noted that small, correctly timed returns across other asset classes seem pointless as he can “buy and hold Bitcoin and make 100% and it’s barely the middle of March. This is what I’ve been trying to pound the table about.” As Daily Hodl reported, Pal also said there’s a “wall of money that’s coming in and so everybody needs to be focused.”
Shorting the bond market or focusing on interest rates, he said, would still not lead to the returns seen in the cryptocurrency space. As CryptoGlobe reported, Pal believes the price of bitcoin could hit $1 million this bull cycle if the cryptocurrency goes parabolic.
The Real Vision co-founder has also predicted the price of Ethereum (ETH), the second-largest cryptocurrency by market capitalization, could go to $20,000 “this cycle,” based on Metcalfe’s Law.