Raoul Pal, a former Goldman Sachs manager and current finance expert, has dismissed former Coinbase CTO Balaji Srinivasan’s $1 million Bitcoin bet as having zero chance of happening. Srinivasan had bet that Bitcoin’s price would reach $100,000 by 2021, but Pal believes that Srinivasan’s prediction is unrealistic and that the crypto market is unlikely to grow that rapidly. Despite this, Pal believes that Bitcoin will continue to rise in value and recommends investing in it as a long-term asset.
Raoul Pal has dismissed the probability of Bitcoin reaching $1 million in the next 90 days, despite acknowledging the underlying concept of the hyperinflation impact on asset prices. The co-founder of Real Vision made these remarks in a conversation with Anthony Pomplino. Pal’s comments follow Balaji Srinivasan’s open bet, in which he accepted the challenge that Bitcoin would, in fact, reach $1 million by June 17. Pal considered the bet as a marketing concept, highlighting the significance of bringing awareness to Bitcoin and the broader macro picture.
The banking crisis has led to a 40% increase in Bitcoin’s price, with investors now seeking alternatives to traditional banking methods. The Fed’s Bank Term Funding Program, designed to provide banking liquidity through loans up to the par value of assets held, is being compared to quantitative easing by Paradigm co-founder Matt Huang. The latter expects the BTFP to result in money flooding capital markets, subsequently increasing asset prices and inflation.
Pal expects Bitcoin and cryptocurrencies to perform exceptionally well off the back of BTFP, particularly since BTC spikes higher when the balance sheet increases on quantitative easing and pulls back in times of quantitative tightening. He predicts that Bitcoin and crypto will reach $50,000 much sooner than expected, with this price point possibly achieved this year or within the next 12 months.
In conclusion, while a $1 million Bitcoin bet may not come to fruition in the next 90 days, the significance of awareness and education surrounding Bitcoin and cryptocurrencies amidst the broader macro picture is essential. As traditional banking methods face increasing fragility, parallel alternatives like cryptocurrency offer hedging opportunities against potential banking crises.