Macro guru Raoul Pal says that investing in anything besides Bitcoin and the crypto markets is starting to look pointless.
In a recent talk with Ash Bennington on Real Vision Finance, Pal highlights that Bitcoin is the only asset class that has witnessed a legitimate long-term rally when compared to the Fed’s balance sheet.
“It is the key denominator now of asset prices. The dollar is not the denominator. We should be using the Fed balance sheet. When you divide the S&P by the Fed balance sheet since 2008, the S&P’s traded in a range, as has gold, as has real estate, which is the top end of the range, equities are in the middle of the range. They basically offset the growth of the balance sheet. The only asset that’s obviously done differently is Bitcoin.”
The macroeconomics specialist asserts that his love for Bitcoin isn’t based on the fact that it’s new and exciting, but because it’s significantly outperforming everything else, making investing in other markets meaningless.
“The point being is that it is outperforming every asset class on Earth. It’s not because I love it because it’s new and shiny, it’s because it makes everything else look pointless. I simply don’t care about value vs. growth. ‘Oh look there’s a 10% return that could’ve been had I timed that right.’ I can buy and hold Bitcoin and make 100% and it’s barely the middle of March. This is what I’ve been trying to pound the table about. At this phase in the crypto cycle, nothing else matters.
That does not change. It doesn’t change on a dime. We’ve got a wall of money that’s coming in and so everybody needs to be focused and I’m sorry there’s a bunch of you like ‘I don’t like this new digital stuff. It’s ********. Why doesn’t Raoul talk about interest rates?’ Because frankly, I don’t care because they don’t generate any money for me. Shorting the bond market was still not the same return as just holding Bitcoin. Buying the dollar, not the same return. Buying copper, not the same return. Buying oil, not the same return. Buying the Nasdaq, not the same return. Nothing has had the same return, so why even do it?”
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