Macro Investor Raoul Pal Says Bitcoin is the Only Asset Worth Owning
You always know crypto is in season when all the long-term Bitcoin bulls step out of the shadows and start proclaiming their wild BTC predictions for the future. It's always a fun time and it most definitely drives a lot of new crypto users into the ecosystem as they read headlines and get excited.
In the past, we've seen many Bitcoin bulls call for BTC to go to $50,000, $100k, $1m and even $5m+
you're bullish, we get it.
I'm a Bitcoin bull, but I stay somewhat quiet about how bullish I am on Bitcoin. It's my single largest investment and I firmly believe that BTC will be vastly more valuable in 10 years than it will today. The 2 relevant questions are: how much more valuable and what happens between now and then.
We can speculate on what happens in-between now and a decade from now, but to me, Bitcoin has already solidified itself as the best asset you can own for the next 10 years. Other major figureheads in finance have stepped up lately, including one of the most legendary investors on the planet - Paul Tudor Jones.
Raoul Pal Thinks it May Not Be Worth Owning Anything Other Than BTC in the Long-Run
This is a great headline, but Pal backs himself up with some great statistics. I enjoyed reading his Tweet thread a few hours ago. He kicks it off by talking about gold and how many investors utilize gold as a way to offset dilutive effects on fiat currencies via central bank balance sheet growth.
G4 is a term and metric that he mentions and utilizes as a comparison to both gold and BTC. G4 represents the growth in balance sheets for the Bank of England, Bank of Japan, The U.S. Federal Reserve, and the European Central Bank. In his first tweet, you can see his initial thoughts about gold followed by a chart that compares gold to G4.
In his second tweet, he follows up the G4/gold chart with a G4/BTC chart:
On almost any time horizon, BTC is the only asset to outperform central bank balance sheets. To Pal, this means that Bitcoin is one of the most valuable inflation hedge assets that any investor could hold in their portfolio.
He even takes it a step further, saying that his BTC conviction is getting more and more preposterous as his believe that BTC is the best asset to hold long-term solidifies:
I think it's important to take every bull/bear call on BTC with a grain of salt. Remember that nobody knows where the price is headed and that buying BTC or any other asset based solely on someone else's "predictions" is a bad idea.
Instead, you should understand the fundamental technology and economic impacts of something like Bitcoin. Pal does a great job illustrating Bitcoin's history as an outperforming asset against central bank balance sheets in a time when the average person is starting to wake up to central bank policies and are asking "what the hell is happening to my currency?".
This G4 statistic is a great tool to add to my arsenal. I'll continue to use it as I talk about Bitcoin's historical performance and more importantly; it's future potential as the best performing asset in the world.
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