Bitcoin faces difficulty today.
The bitcoin price is facing significant headwinds in the short term, after stimulus talks in Washington reached an impasse. BTC is also trying to extricate itself from news about the cryptocurrency exchange OKEx, which has suddenly stopped withdrawals.
The negative sentiment has meant that bitcoin has repeatedly failed to stay above the $ 11,500 level. Although the short-term prospects look bleak, proponents of the crypto universe have not been intimidated. In an interview a few days ago, Real Vision founder and CEO Raoul Pal exposed his optimistic case. Pal proclaimed that the benchmark cryptocurrency will reach $ 1 million in just five years.
Raoul Pal says BTC will reach $ 1 million by 2025
Raoul Pal told the Stansberry Research that bitcoin will surpass the $ 1 million mark in the next five to six years. The argument is that there is a “huge wall of money” that will flow into the bitcoin market in the coming years.
“We are going to go through two halvings and, as far as I know from all the institutions, from all the people I speak to, there is a huge amount of money going into it. It’s a huge wall of money, but the paths aren’t there to allow people to do it yet, and it’s coming, but it’s on everyone’s radar screen and there are a lot of smart people working on it. “
The current bitcoin halving is expected to run for at least four years. Halving halves the amount of bitcoins that miners can produce each day. This means that the supply of BTC is reduced while the demand increases. In addition to Raoul Pal, other market watchers also see halving as a catalyst to boost bitcoin prices.
Regarding the “money wall” that will raise the price of BTC to $ 1 million, large-scale institutions have been diversifying into bitcoin in recent months. Stone Ridge, a $ 10 billion asset management company, followed in the footsteps of MicroStrategy and Square earlier this week by announce the purchase of 10,000 BTC (valued at $ 115 million at the time) as part of its cash reserve strategy.
Pal believes that the increase in bitcoin to seven digits will not be the result of the global collapse, but because the cryptocurrency will see the adoption of “large real pools of capital”.
Pal: Bitcoin will “massively outperform” gold
In light of the coronavirus pandemic, the global economy is facing a myriad of uncertainties. Amid the reckless printing of money and the skyrocketing global debt of negative yield, investors are increasingly turning to safe havens like bitcoin and gold to protect their investments.
Bitcoin recorded a stellar rise this year, with its price rising approximately 50% year to date. Gold also performed well, with gains of 25% in the same period.
According to Pal, however, bitcoin is the safest bet. Real Vision’s CEO is currently invested in gold, but he plans to dispose of the yellow metal by BTC in the near future. This is simply because he is “100% sure” that bitcoin will “massively outperform” gold in the future. “In that case, why would I have a gold allocation?” Pal asked sarcastically.