- Analyst Raoul Pal predicts a purchase of Bitcoin from Apple and Microsoft to protect against a drop in the US dollar.
- The emergence of CBDCs will be a boost for the adoption of Bitcoin as a global reserve asset.
In a new edition of the Real Vision program called “The End of Monetary & Fiscal Policy As We Know It,” Raoul Pal predicts an increase in Bitcoin adoption. The analyst and former hedge fund manager for Goldman Sachs, has been bullish about the cryptocurrency, especially after the announcement by PayPal about the introduction of Bitcoin, Litecoin, Bitcoin Cash, and Ethereum to its services.
Pal has called Bitcoin the lifeboat that will allow big corporations and individuals to get through the economic crisis caused by the coronavirus pandemic. The analyst believes that the current situation is similar to the crisis of 2008, referring to the policies that the U.S. Federal Reserve has had to implement to stimulate the economy at the expense of the dollar.
In the last two months, companies like Square and MicroStrategy have announced large purchases of Bitcoin. Part of a strategy to protect against dollar devaluation, Pal believes the trend will continue. Therefore, he expects to see companies like Microsoft and Apple implement a similar strategy:
Nothing is a reserve asset like Bitcoin. Literally nothing. Not even gold. It is truly extraordinary, and it’s so innovative we have no idea where it’s going. And when we talk about Bitcoin, we can also look at the other parts of the digital asset ecosystem. That is not going away. The genie is out of the bottle. Ethereum is not going away. Digital assets, tokenization – it’s all coming, and it’s all going to slot into these new digital currencies brought by the central banks.
Pal has been commenting on this in Real Vision and via his Twitter account. One of the catalysts for Bitcoin’s adoption, in conjunction with the crisis, will be the launch of central bank digital currencies (CBDC). Unlike other analysts, Pal believes that the functioning and characteristics of CBDCs will make them lose value against “hard assets”:
Fiat globally will be worth less versus hard assets. And that means that gold and in particular Bitcoin will become THE way to circumvent the system of ever lower value. It also creates incentives systems for other nations to opt into a hard currency system to attract capital.
Bitcoin, a revolution as big as the Internet
In the coming years, Pal predicts that Bitcoin’s holders will benefit from the “money revolution as big as the Internet”. Therefore, changes will occur around Bitcoin that will impact all industries:
It’s going to be as big a revolution of money that the internet was from everything to email to video to shopping to commerce. It just changed the world we live in. That’s the size of what this is. And this central bank digital currency is part of that narrative. And it is positive, I think, if you own Bitcoin.
The revolution Pal describes will not be stopped, despite the attempts of financial institutions and governments; the incentives to own Bitcoin will be greater, he claims. The real losers in this migration toward a global Bitcoin standard will be the banks. Besides being absorbed, the CBDCs could make them irrelevant:
The Wall of Money is coming. Bitcoin is protection as a pristine reserve asset. Bitcoin is freedom. Bitcoin is future value and bitcoin is THE future. Everything is changing and its changing fast. I’m irresponsibly long and its seeming more and more responsible by the day.