Raoul Pal, the CEO of the Global Macro Investor and former Goldman Sachs fund manager, thinks Bitcoin is the call option on global central bank uncertainty. And he says hedge funds are noticing.
Pal recently joined Galaxy Digital CEO Mike Novogratz on the Unchained Podcast to discuss Bitcoins role amidst all of the global economic issues caused by the coronavirus pandemic and various government responses to it.
Pal says now that the fragilities of the international financial system are so visible, hes been getting calls and e-mails from hedge fund investors every day inquiring how they can invest in Bitcoin.
Weve never gone through such central bank uncertainty. None of us have lived through monetary printing of this kind of magnitude. In fact, none of us even believed it would ever happen. So when youve got something that is so large and it continues – it doesnt go away, it gets worse and worse and worse – everybody has to ask the question, Well what could it mean? And Bitcoin is the call option on the What could it mean? And its as simple as that. So in a big portfolio, a very little bet could end up being a very big thing if something at the central bank level, i.e. fiat currency, comes into a larger problem.
Both Pal and Novogratz stress the impact Millennials and Gen Z could have on Bitcoin and how its viewed by the mainstream population going forward.
Pal, who has predicted BTC could soar to $1 million, says that aside from crypto, Millennials have essentially none of the high-return investment opportunities that so many Boomers had throughout their lifetimes.
If you are a Millennial, so youre under the age of… 35, and you look at your 401k and your investment opportunities for your retirement savings, you have equity valuations at all time highs, bond yields at all time lows, credit yields at all time lows, and property prices pretty much at highs — you have almost zero opportunity to have an expected positive return over the next 10 or 20 years. Thats the reality here.
So what do you do? How do you save for your future? You could sa ...