A previous Head of Equity and Equity Derivatives at Goldman Sachs in the United Kingdom recently came out supporting Bitcoin. Specifically, the ex-Goldman Sachs executive argues that “nothing” else but Bitcoin is worth betting on financially.
E-Goldman Sachs executive foresees $8 trillion Bitcoin market cap
The ex-Goldman Sachs Head, Raoul Pal, is also the founder of Global Macro Investors and Real Vision Group. His bullish comments came in an interview on the Stephen Livera podcast earlier this week.
Pal went on to exemplify that investors are increasingly looking towards Bitcoin simply due to the fact that no other asset can compete with Bitcoin’s potential gains. As such, Pal argues that many recognize the possible gains of Bitcoin investing – especially “macro” investors.
“I know all these macro guys, they’re all in it. They get it. They get the optionality. They may be complete believers, part believers, partial believers. But even then, if it’s a 1% chance of being right and the upside is 100x from here, you’d do this all day.”
Moreover, Pal is not mixing words when it comes to predicting massive Bitcoin price growth. Rather, Pal argues that purchasing Bitcoin currently “outweighs all the risks” of the asset class.
Could Bitcoin’s price rise past a million?
Even more spectacularly, Pal also floated $8 trillion as a possible future Bitcoin market capitalization. Many may disregard this prediction as simply being taken out of thin air, but Pal argues it is based on risk calculation.
“So if it’s worth 80 trillion dollars, let’s say you have a 10% probability, that’s 8 trillion dollars. It’s currently worth 200 billion dollars. So even if there’s a 1% chance of it working […] what it’s telling you is that it’s ludicrously underpriced if any of these probabilities play out.”
Furthermore, Pal also notes that statistics such as these are “crazy attractive” to investors. Consequently, Pal argues that this allure for astronomical future gains is what is “sucking in so many of these macro huts, because they’re like, ‘damn, nothing else has this payoff’.”
Although the prediction of an $8 trillion market cap for Bitcoin might seem extreme, extrapolating the logarithmic price performance of Bitcoin indicates such sums may be on the horizon. Pal is also guiding for a $100,000 Bitcoin price following 2020’s Bitcoin halving, and $1 million in 2024.
Nothing is certain, but it will undoubtedly be interesting to see whether Pal’s comments pan out. As Pal notes, macro investors are certainly already betting with their wallets that it might.
Image Source: Manuela
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.