Billionaire investor Paul Tudor Jones said recently he was betting on bitcoin as the best hedge against inflation in the age of coronavirus. The cryptocurrency reminds him of gold in the 1970s, he added.
RT’s Max Keiser spoke to Raoul Pal of Global Macro Investor and Real Vision Group about those statements and whether or not they will spur interest from the larger hedge fund investors. They discussed gold’s current market capitalization, which is around $9 trillion, while bitcoin’s market cap sits at $117.8 billion.
Talking about bitcoin’s valuation over time, Raoul said: “If it becomes an eco-system, and we believe it will be and it will take the whole eco-system with it as well, then yes, I think a $10 trillion number is easily achievable within that process.”
That takes it “from being a niche to an asset,” the strategist explained, adding: “Once it’s a full asset class it becomes investable for others.”
The only arbiter of that is the price, according to Raoul. “The more price goes in, the more it brings people into the market.”
He also said that after this week’s ‘halving’ event for the bitcoin, it will very interesting to see how much capital that will bring into the marketplace. “I think it’s going to surprise many people,” suggested Raoul.