Despite the rise and fall of Bitcoin, it has been said to be the best paying off cryptocurrency. Its reward after a long term hodl outweigh the risks of investing.
The former head of equities derivatives at Goldman Sachs UK office and founder of Global macro Investors and Real Vision Group, Raoul Pal, is in support of placing a long term bet on Bitcoin (BTC). During the Livera podcast that held this week, Pal shared other insights saying:
“I know all these macro guys, they’re all in it. They get it. They get the optionality. They may be complete believers, part believers, partial believers. But even then, if it’s a 1% chance of being right and the upside is 100x from here, you’d do this all day.
Due to the price fluctuations in the market, investors and interested candidates are sometimes reluctant to take the risk of buying investing and buying into Bitcoin. However, Raoul Pal gives his opinions about buying bitcoin saying that according to his own analysis, in the future there is a possibility in the future that the BTC market cap will hit $8 trillion. He further explains:
“So if it’s worth 80 trillion dollars, let’s say you have a 10% probability, that’s 8 trillion dollars. It’s currently worth 200 billion dollars. So even if there’s a 1% chance of it working […] what it’s telling you is that it’s ludicrously underpriced if any of these probabilities play out.”
Analysing this, one would agree that this figure is very intriguing thus most macro guys are dipping into for they nothing else has this payoff.
Prediction says Bitcoin will increase to $1 million in the coming year
According to the most recent PlanB’s chart, it suggests that the price of Bitcoin price will escalate to $100,000 after next year’s halving, and to a price, $1 million after 2024 and Pal agrees that this is possible. In his words:
“Yeah, it’s an option,” says Pal. “And, okay, it’s less of an option than it was when it was much cheaper, but if you look at PlanB’s stock-flow model, stuff like that, you can see the comparative upside. And if you try and get your head around the digitization of everything, if you try and get your head around an alternative financial system, even if it has a low probability, right?”
Sharing his journey so far with Bitcoin, Ex-Goldman Sachs exec stated that he was “probably the first person to put together a valuation using the above=grouns supply and below-ground supply of old, and inputting that into Bitcoin, which was basically the Stock-Flow model at a very simplistic level’.
He goes on to share when he discovered Bitcoin through some of his clients who were already mining it when it was at 17 cents.
“[…]They were running a hedge fund, and they happened to have electricity included in their office space, and somebody talked to them. They were very, very early adopters […] So, I wrote an article. I got long, at around $200.”
Former Bitcoin bear joe Kernen predicted that BTC might hit $55,000 by May 2020, that’s the date of next halving. Currently, the price of BTC is $10,935 as when this article was published.