Former Goldman Sachs executive Raoul Pal says that crypto is about to outrun virtually all other asset classes alongside the continuation of long-term currency debasement.
Pal tells his nearly one million Twitter followers that following the collapse of First Republic Bank, it appears as if the US will move into another chapter of money printing to be able to service its massive debt.
The Real Vision founder warns that most people won’t be able to avoid the negative effects of currency debasement by hoping for pay raises or being smart about saving.
“The outcome is that the debt payments and bailouts are really mutualized amongst the 99% while the 1% asset holders see the value of their assets rise (due to the fall in the denominator).
Incomes are not linked to the balance sheet, nor are revenues. They underperform. DO nothing and get poorer. After all, an asset is future deferred consumption thus if you own less assets, your future self is poorer.”
Pal says “high quality crypto” and tech stocks are the only assets that will have the ability to outrun his predicted currency debasement.
“Only two assets outperform this debasement: tech stocks and high quality crypto. Crypto has by far the highest beta to the global central bank balance sheets.
Not Real estate, not gold, not SPX, not bond yields, not EM (emerging market) equities, not credit. They all perform in line with the central bank balance sheets, or underperform.
This insidious mutualization of debt is a game you can opt out of…
Bitcoin was literally invented for this and due to its fractionalization is available to anyone. Ethereum even offers you a yield on top.”
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