Home Coins Bitcoin (BTC) 'Bitcoin Beats Gold on Every Single Measure,' Says Macro Strategist Raoul Pal

‘Bitcoin Beats Gold on Every Single Measure,’ Says Macro Strategist Raoul Pal

1597272304 211 Bitcoin and Gold Correlation Reaches Record High 70 Bolstering BTCs

Global Macro Investor CEO Raoul Pal has explained why he believes bitcoin is better than gold in every way. He proclaims that bitcoin is “the hardest form of money” and “the best reserve asset and best collateral asset ever seen.”

Bitcoin Is ‘the World’s Best Trade’

Macro strategist and former hedge fund manager Raoul Pal shared some analysis from his monthly global macro investment report early this week. The report is exclusively for Global Macro Investor clients. This month’s core focus is on bitcoin, particularly how the cryptocurrency compares to gold.

Pal previously co-managed the GLG Global Macro Fund in London after departing Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. He retired from managing client money in 2004 at the age of 36 and founded Global Macro Investor and Real Vision Group.

“I think its the world’s best trade and of which I’m irresponsibly long,” Pal wrote about bitcoin. He then proceeded to outline Bitcoin’s key features, such as its fixed supply and how its transactions are immutable, distributed, and decentralized, “making it incredibly secure,” the former hedge fund manager detailed, asserting:

The honest truth is that it beats gold on every single measure except it just doesn’t have 10,000 years of history.

“Something that has a finite fixed supply and is incredibly secure has true value,” Pal emphasized. “The fact that it is divisible, portable, transferable and exchangeable makes it have potentially more value than any other store of wealth, or any other form of money.” In contrast, he pointed out that gold lacks ease of use and transportability in the digital world.

“My guess is that bitcoin will trade at rates higher than bonds, not because of credit risk or inflation — bitcoin suffers from neither — but because the value of that collateral is worth more due to its ‘pristineness,’” Pal opined. “Bitcoin is pristine collateral. The greatest form of collateral. Its blockchain ownership structure reduces the huge black swan risk of who owns what. It is all recorded and more importantly, provable.”

1597173073 593 Billion Dollar Public Company Microstrategy Moves 250 Million Into BTC1595858606 623 3iq Files IPO for Ether Fund to Trade on Canadian

The strategist also explained that gold was used as collateral but its role has diminished as central banks choose bonds over it. “Gold also is not easy to use because it has to sit in vaults and its ownership needs to be proven and transferable and in the world of re-hypothecation, even central banks have re-lent the gold out so no one knows the owner, unless you own it and store it yourself,” Pal detailed, affirming:

In my opinion, bitcoin is the best reserve asset and best collateral asset ever seen. It is the hardest asset ever produced, with an impossible-to-change formula for supply that gives it predictability like no other asset ever.

Government bonds, especially U.S. Treasuries, are the current collateral for the world, he continued, adding that the current system is failing due to the action of central banks. “When debt loads became unsustainable, meaning that the weakest borrowers couldn’t get access to enough collateral, instead of the price of collateral rising, thus forcing firms to go bust, central banks began to increase the supply of collateral and reserves (quantitative easing),” he described. The central banks’ action devalues the collateral either abnormally or over time as fiat money’s purchasing power falls.

Bitcoin’s value, on the other hand, is protected as central banks cannot create more of it. Therefore, “its value during collateral shortages (recessions) goes up, forcing only the strongest creditors to have access to it and thus allowing the business cycle to work in weeding out the weakest creditors.” Believing that bitcoin solves all of the existing financial system’s collateral problems, Pal concluded that in his view bitcoin will become the more desirable form of collateral, adding that he sees this as the killer application.

The macro strategist revealed in a tweet last week that he owns a lot more BTC than gold, and he also owns some ETH. Believing that bitcoin outperforms gold overall, he stated, “Gold can go up 2x or 3x or even 5x while bitcoin can go up 50x or even 100x.”

Do you agree with Pal? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
USD - United States Dollar

Most Popular

Bitcoin Skeptic Turns Bitcoin Bull: Billion Dollar Company Buys 17K BTC in 74 Hours

Nasdaq-listed company Microstrategy recently bought almost 17K bitcoins within 74 hours, costing about $175 million. The CEO of this billion-dollar company used...

The emergence of cryptocurrency hedge funds

I started exploring Bitcoin first in 2012 and, still today, I am fascinated by the opportunities and future potential digital assets pose as an...

Brazen Nigerian Crypto Scam Inksnation Still Operational Three Months After Regulator Warning

One of Nigeria’s most brazen crypto scams, Inksnation remains operational and still invites new investors some three months after the country’s Securities...

Former government contractor avoids jail for mining crypto at work

A former government contractor in Australia who mined crypto using state-owned supercomputers has avoided jail time. According to The Sydney Morning Herald, Jonathan Khoo...
Bitcoin (BTC) $ 10,870.98
Ethereum (ETH) $ 370.09
XRP (XRP) $ 0.246204
Tether (USDT) $ 1.00
Bitcoin Cash (BCH) $ 225.23
Bitcoin SV (BSV) $ 153.81
Litecoin (LTC) $ 46.95
EOS (EOS) $ 2.67
Binance Coin (BNB) $ 26.01
OKB (OKB) $ 6.19
Tezos (XTZ) $ 2.24
LEO Token (LEO) $ 1.24
Cardano (ADA) $ 0.089243
Monero (XMR) $ 91.81
Stellar (XLM) $ 0.076393
Chainlink (LINK) $ 9.91
Huobi Token (HT) $ 4.79
TRON (TRX) $ 0.026796
USD Coin (USDC) $ 1.00
Dash (DASH) $ 70.20
NEO (NEO) $ 23.38
IOTA (MIOTA) $ 0.260474
NEM (XEM) $ 0.108474
Zcash (ZEC) $ 57.12
Maker (MKR) $ 477.88
Paxos Standard (PAX) $ 0.998996
Ethereum Classic (ETC) $ 5.06
VeChain (VET) $ 0.014290
TrueUSD (TUSD) $ 1.00
FTX Token (FTT) $ 3.72
KuCoin Shares (KCS) $ 1.15
Waves (WAVES) $ 2.44