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Cyber Bitcoin
Edited by qqqpeter at 2020-5-28 22:08

Hong Kong media, HK01 reported that Raoul Pal, former head of hedge fund sales at Goldman Sachs and CEO of Real Vision, believes bitcoin will outperform expectations and assume its role as a hedge under macroeconomic pressures, regardless of the future strength of the dollar.

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According to Cryptoslate, a theory has long circulated in the bitcoin market that if the dollar rises, the price of bitcoin will fall, just as the price of gold usually rises in the face of a weaker dollar. While the new crown epidemic hit the global economy hard and the US dollar surged higher, bitcoin also surged higher.

Raoul Pal writes that the dollar will continue to move higher as demand for the dollar increases. In turn, this can be a drag on global economic growth, exacerbating dollar shortages, and worsening solvency due to declining global cash flows, which can even lead to a supply shortage in the dollar. That seems to be a good thing for Americans or those with dollar assets. A rebound in the dollar means less money to travel abroad and buy foreign goods.

Bitcoin is Trusted

Raoul Pal argues that this could lead to a "collapse" of the legal tender system, forcing policymakers to create a "non-dollar dominated monetary system. Consider Bitcoin to be a candidate for the system. Bitcoin, he said, is a trusted, verifiable, secure, digital system that integrates financial and accounting systems. It is the future of the entire medium of the trading system and the future of money and its operating platform.

Raoul Pal envisioned another possibility: the dollar actually began to move lower due to the trillions of dollars the Fed printed to stimulate the economy. But in any case, bitcoin will outperform expectations and serve as a hedging tool against possible inflation or deflation. He pointed out that Bitcoin is the best allocation of all asset classes in terms of technical aspects, fundamentals, capital flows, and pipeline.

Raoul Pal boldly speculates that Bitcoin will top $500,000 in the future. Assuming a supply of less than 20 million bitcoins, the total market value of each coin over $500,000 is $10 trillion. To support this argument, he also cites a model by bitcoin analyst "PlanB" with an accuracy of 99.7% R-squared, which predicts an average price of $288,000 for bitcoin between 2020 and 2025.
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