Raoul Pal authored a report that predicts a gloomy outlook of the global economy in the coming years, much worse than the great depression. The report which is sent exclusively to the GMI clients has been made public given the dire situation that is unfolding.
In laying out his views, Raoul was optimistic that Gold and Bitcoin are going to save those who are prepared for this downturn in the future economy.
“The only answers that make any sense are gold and bitcoin. Gold is the protection of our assets. Bitcoin is the call option on the future system. Both are going to save us,” Raoul said.
$10 Trillion dollar Bitcoin market cap is totally plausible
Raoul remained optimistic about the gold prices. He says in the report that gold has an opportunity to go 3 to 5 times in the next three to five years.
That 3x to 5x should put the gold market cap at around $60 trillion dollars.
However, when it comes to Bitcoin, he makes an even more optimistic prediction. He thinks $10 Trillion dollar market cap for Bitcoin alone is possible. He says “after all, it isn’t just a currency or even a store of value. It is an entire trusted, verified, secure, financial and accounting system.”
He thinks other crypto projects and digital assets will gain traction including Ethereum. And those combined should bring the crypto market to a $100 trillion dollar industry.
In our opinion, whether this valuation will come in the next 5 or 10 years is not relevant, the trajectory is what is important.
Raoul says “Bitcoin is a call option on [$100 Trillion financial system]. It is the future.”
$100,000 bitcoin in next two years
According to his bitcoin price prediction, we should see a $100,000 bitcoin in the next two years. He said that charts look ‘spectacular’ and if things get too optimistic a $1 Million bitcoin in the same period is not entirely out of question either, in his view.
Having been born during the crisis of 2008, Bitcoin is poised to upend the faulty systems in the coming doom days.
“This is literally what bitcoin was invented for,” he says.
Pension crisis forced sale
Raoul also talks about how cutting off of corporate buybacks are going to create more sellers than buyers which will slump the market.
Those who have to depend on pension will start selling at every rally they can find to protect their nest egg.
Lack of buybacks, continuous sell pressure and slow growth will be a deadly combination for the pensioners.
“The baby boomers are totally f*cked,” Raoul lashes in the report.
Putting money where mouth is
He makes it a point to note that he is investing about 25% of all of his liquid assets into Bitcoin and 25% in Gold. He did not dismiss the US dollars completely, he is actually keeping his liquid assets at 25% USD.
“Personally, I am buying each and every day right now. I want to own as much as I can,” he said “I am putting my money where my mouth is.”
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