In the year 2031, Bitcoin will reach eight figures for the first time
On October 7, Raoul Pal, the founder of Real Vision & former Goldman Sachs hedge-fund manager, stated bitcoin’s price could hit $1 million in 5 years.
In an interview with Stansberry Research, he mentioned such a cost increment to a wave of institutional funds pouring "an enormous wall of money" into the asset.
The price of bitcoin has detonated about 40% year-to-date and was valued at $11,387 on Thursday. It’s additionally the biggest digital currency by market capitalization, at about $200 billion, as indicated by information published by Statista.
"Just from what I know from all of the institutions, all of the people I speak to, there is an enormous wall of money coming into this," he told the host Daniela Cambone. "It's an enormous wall of money — just the pipes aren't there to allow people to do it yet, and that's coming. But it's on everybody's radar screen, and there's a lot of smart people working on it."
The CEO & co-founder of Global Macro Investor, Pal said the global economy was moving from the "hope phase" to the "insolvency phase" as investors realize that a recovery from the COVID-19 pandemic will take significantly longer than expected.
"The economy's not going to recover for a lot longer than we expect," he said. "There's no stimulus around, and we've got more problems to come in Europe, the US, and elsewhere. And businesses don't have enough cash flow. They're closing in droves. And that's what I called the insolvency phase."
He added that "the only answer is more from the central banks, so that's why I started to buy more and more bitcoin."
According to Cambone, at a certain point, Pal's portfolio was similarly dispersed among gold, equities, and bitcoin, dollars. But during the interview, Pal said that the bitcoin percentage he held was likely above half at this point. Pal recognized that such a designation presented him with a major disadvantage however that's what he acknowledged, as "the upside's so much bigger."
CBW - External Analyst