Bitcoin had an amazing past decade by every definition of the word. The price of the cryptocurrency surged by literal millions of percent since its birth in 2009, some of the world’s most important people — Elon Musk included(!) — gave a nod to the cryptocurrency, and the broader industry began a mainstream technological trend.
Bitcoin’s clear outperformance against all other assets in existence has left many wondering if the cryptocurrency can keep its macro uptrend intact for the coming decade.
According to Raoul Pal — a former Goldman Sachs executive who now is the CEO of finance media company Real Vision — BTC may do just that.
He argued that the cryptocurrency would be his choice if he could only own one asset for the next 10 years.
Bitcoin, the Best Asset of the 2020s?
On Friday, the Wall Streeter turned markets researcher and media magnate explained why the asset he is most optimistic about for the 2020s is Bitcoin.
In a to-the-point Twitter comment, Pal said that he thinks Bitcoin is the perfect asset for him to hold for the next decade because it “encapsulates all of larger macro views,” referencing previous statements he made suggesting the world will turn to an alternative system of finance that will be digital. (Previously, the Real Vision executive said that Bitcoin is basically an option on the future of finance.)
If I could only own one asset for the next 10 years, it would be bitcoin $BTC It encapsulates all of my larger macro views and feels like the point on the far horizon we are headed to, in some shape or form. Yes, like gold too and many other things but BTC risk/reward beats all.
— Raoul Pal (@RaoulGMI) January 31, 2020
He added that from a pure risk-reward analysis perspective, Bitcoin “beats all.”
Indeed, per previous reports from NewsBTC, Pal told prominent BTC podcaster Stephan Livera that all popular asset classes are extremely expensive (meaning overvalued), save for BTC.
Equities, he explained, are roughly at all-time highs, and are pushing extreme valuations for relatively little profit and potential.
Bonds aren’t much better, Pal opines, drawing attention to the “virtually zero yields” — and negative yields in some cases — that debt deemed safe provides.
Even real estate isn’t attractive, with the prominent investor calling this asset class “unaffordable”, adding that it makes even less sense to purchase homes because they’re trading near all-time highs.
Others Agree With Cyclical Crypto Play
Others agree that the following decade for Bitcoin will be formative. More formative than the last.
Deutsche Bank in a report published in December said that it thinks that crypto assets have the potential to take over fiat currencies as a whole:
“The forces that have held the current fiat system together now look fragile and they could unravel in the 2020s. If so, that will start to lead to a backlash against fiat money and demand for alternative currencies, such as gold or crypto could soar.”
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