The entire crypto market could increase in size by 50,000%, according to macro investor and Bitcoin advocate Raoul Pal.
In a new interview on the Gestalt University podcast, The Real Vision Finance founder says that the public is generally unprepared for the ways in which digital assets could transform the current financial landscape.
“There is a parallel financial universe being built in front of our eyes and people are slowly migrating across. People have no comprehension yet of how big this is. They’re still bickering over whether Bitcoin is an investment vehicle without realizing the magnitude of what is actually going on.”
Pal remarks that as blockchain technology and the digital asset sector slowly reshape the financial system, the market is set to capture hundreds of trillions of dollars of value.
“This is a multi-quadrillion dollar world that’s being developed in terms of flow. In terms of the stock market, the bond market, the equities markets – all of these things are two, three, four hundred trillion dollar markets each…
Currently the digital asset sector is [$2.26 trillion], so what is it going to be worth? At least 100x from here still, probably 200x maybe even 500x.”
Pal predicts that the digital asset sector will offer Millennials an opportunity to access wealth building opportunities that would otherwise be out of their reach.
“You’re democratizing access to all assets which is a huge game changer. If you are a Millennial, a thirty-year-old now versus the thirty-year-old baby boomer back in 1980, the baby boomer got 7.5 Pe ratio in the equity market, 18% interest on fixed income and the cheapest property in inflation adjusted terms since the war, right… So then the same thirty-year-old now, they’ve come out in debt from university so they’re on the back foot as opposed to their parents who actually ended up in debt…
Suddenly the digital asset world walks onto the scene. Now, I’m talking about a 500x growth potentially over the next 20 or 40 years where they can participate… This is game-changing, it levels the playing field. It’s democratization on mass.”
Pal also addresses the Bitcoin market and suggests that BTC supplies are virtually non-existent, which may cause the asset to rise further than investors expect during the current bull cycle.
“There is no [BTC] supply. The only supply actually in the market to be thruthful is a couple of big funds that rebalance at month end and quarter end because that’s what institutions do, and that’s new for the space, and basically day traders beings topped out or being cleared out of inventory. Because there’s no actual supply…
There is a risk, and I don’t know what the probability is, but it’s higher than most people expect, that we don’t stop at $200,000 at this cycle… but we actually go batshit crazy because of this and we get to half a million or maybe even a million.”
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