Bitcoin is starting to permeate the narrative and it is going mainstream faster than people imagined, Real Vision CEO Raoul Pal said during today’s Daily Briefing.
Pal explained his extreme bullishness on Bitcoin, saying that the cryptocurrency feels like the superior trade to almost every other outcome and he thinks it will be the key narrative for next year.
Pal believes that crypto will become a global reserve asset as the world continues to deal with the virus and ongoing economic slowness. There will be more stimulus, more money printing, and the value of fiat currency will decline versus hard assets, he said. Not only is crypto a store of value, but it also comes with an embedded call on the future.
Pal said he’s never seen a whole macro asset that looks like this before—that is, an asset that’s going to trade like a technology stock—and it is empowering for everybody.
“Bitcoin is the biggest legal front-running opportunity I’ve ever seen,” he said, “and it is all to the advantage of the little guy.”
Pal also discussed how making it easier for RIAs and institutional investors to add crypto to portfolios will be a game-changer. The ETF is coming; it’s not a matter of if it will be approved, but when it will be approved, he said. Once you give them the tools to put crypto in pensions and 401Ks, there will be trillions of dollars available. You just need small percentages of that to flow into this and it will have a huge impact, he said.
Pal concluded the interview with his thoughts on the relative risk/reward profile of Bitcoin at a time with record low bond yields and a stock market at all-time highs. He said that crypto has a risk-reward skew unlike anything else; it is basically what Boomers got in the equity market in 1981 when you just bought and held it for the rest of your life and you became the richest generation in the world.
“This chance is setting up again. We thought [Millennials] were screwed, but they’ve been given it on a plate. It’s an amazing macro set up,” he said.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: This is pretty obvious, but we should probably say it anyway so that there is absolutely no confusion… The material in REAL VISION GROUP video programs and publications (collectively referred to as “RV RELEASES”) is provided for informational purposes only and is NOT investment advice. The information in RV RELEASES has been obtained from sources believed to be reliable, but Real Vision and its contributors, distributors and/or publishers, licensors, and their respective employees, contractors, agents, suppliers and vendors(collectively,”Affiliated Parties”) make no representation or warranty as to the accuracy, timeliness or completeness of the content in RV RELEASES. Any data included in RV RELEASES are illustrative only and not for investment purposes. Any opinion or recommendation expressed in RV RELEASES is subject to change without notice. RV Releases do not recommend, explicitly nor implicitly, nor suggest or recommend any investment strategy. Real Vision Group and its Affiliated Parties disclaim all liability for any loss that may arise(whether direct, indirect, consequential, incidental, punitive or otherwise) from any use of the information in RV RELEASES. Real Vision Group and its Affiliated Parties do not have regard to any individual’s, group of individuals’ or entity’s specific investment objectives, financial situation or circumstances. RV Releases do not express any opinion on the future value of any security, currency or other investment instrument. You should seek expert financial and other advice regarding the appropriateness of the material discussed or recommended in RV RELEASES and should note that investment values may fall, you may receive back less than originally invested and past performance is not necessarily reflective of future performance. Well that was pretty intense! We hope you got all of that – now stop reading the small print and go and enjoy Real Vision.