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Macro strategist Raoul Pal says the price of bitcoin will reach $1 million in five years. He attributes the price increase to adoption by large pools of investors and the \u201cenormous wall of money\u201d coming into bitcoin, rather than because \u201c<\/strong>the world is collapsing.\u201d<\/strong><\/p>\n Former hedge fund manager Raoul Pal shared his view on the economy, gold, and bitcoin last week in a podcast interview with Daniela Cambone of Stansberry Research<\/a>. Pal previously co-managed the GLG Global Macro Fund in London after departing Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe. He then founded Global Macro Investor and Real Vision Group.<\/p>\n \u201cThe economy is not going to recover for a lot longer than we expect,\u201d he began. \u201cThere\u2019s no stimulus<\/a> around and we\u2019ve got more problems to come in Europe, the U.S. and elsewhere. And businesses don\u2019t have enough cash flow, they\u2019re closing in droves and that\u2019s what I called the insolvency phase.\u201d The former hedge fund manager added, \u201cThe only answer is more from the central banks, so that\u2019s why I started to buy more and more bitcoin.\u201d<\/p>\n His portfolio used to be equally distributed between U.S. dollars, gold, equities, and bitcoin. However, he revealed during the podcast that his bitcoin allocation is \u201cprobably above 50% now.\u201d While acknowledging that this BTC<\/a> allocation exposes him to a 50% downside, he said it is ok for him because the upside is \u201cso much bigger.\u201d<\/p>\n Pal explained that he has reduced his cash holdings and put the funds into bitcoin. \u201cMy trading positions are relatively small because I don\u2019t think there\u2019s as much opportunity as the room is in bitcoin. So really, mainly a bit of cash, some gold, and bitcoin. And I\u2019m even toying with the idea of selling my gold to buy more bitcoin,\u201d the founder of Global Macro Investor shared, elaborating:<\/p>\n I don\u2019t dislike gold but when you get to the macro opportunity \u2026 if bitcoin starts breaking out of these patterns that it\u2019s been forming, it is going to massively outperform gold. I\u2019m 100% sure of that so in which case why would I have the gold allocation.<\/p>\n<\/blockquote>\n The former Goldman Sachs manager clarified that he is \u201cnot fearful of hyperinflation, default or anything else,\u201d adding that he is interested in people \u201cadopting a different monitoring unit for their savings and reserve assets.\u201d<\/p>\n<\/p>\n Pal has a bullish forecast on the price of bitcoin, predicting that it will be $1 million within five years. He explained:<\/p>\n It\u2019s going to be not because the world is collapsing [but] it\u2019s because there\u2019s gonna be adoption by the real large pools of capital.<\/p>\n<\/blockquote>\n He sees bitcoin adoption happening in waves, starting with retail and moving into hedge funds. However, he noted: \u201cWe are not there yet. You can\u2019t prime broke bitcoin assets but that\u2019s coming. We\u2019re starting to see family offices in the space. Next is the institutions, the endowments, the pension plans, and within that you\u2019ll find some government \u2026 suddenly say we have allocated 5% in bitcoin.\u201d He believes that it will be a country such as Nicaragua or one with constant problems of currency devaluation. When that happens, he says it will be \u201canother huge story,\u201d much like the story of Microstrategy moving $425 million treasury reserve into bitcoin.<\/p>\n Emphasizing that \u201cthe pipes aren\u2019t there\u201d to allow large institutional investors to invest in bitcoin yet, he said, \u201cbut that\u2019s coming \u2026 it\u2019s on everybody\u2019s radar screen and there\u2019s a lot of smart people working on it.\u201d Pal further shared:<\/p>\n From what I know, from all of the institutions, [and] all of the people I speak to, there\u2019s an enormous wall of money coming into this.<\/p>\n<\/blockquote>\n Do you agree with Pal? Let us know in the comments section below.<\/strong><\/em><\/p>\n The post \u2018Enormous Wall of Money\u2019 Coming Into Bitcoin, Price to Reach $1 Million in 5 Years, Says Raoul Pal<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n$1 Million Bitcoin in 5 Years<\/h2>\n
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