Bitcoin is no doubt the best performing asset by far. As MarketWatch put it early this year, if you had invested a $100 in BTC back in July 16th 2010, your invested sum would have swelled to over $7,000,000 by March 2019. This is a gain that most investors today can only dream about.
Yet to reach its peak
This obviously makes most people think that the BTC market has already done what it can do in terms of reaching incredible heights. According to one popular analyst though, you aint seen nothing yet! According to him BTC has not yet peaked and is still quite undervalued.
According to Raoul Pal, a former executive of Goldman Sach’s European Hedge fund sales business, Bitcoin is still very cheap. Pal has been a Bitcoin bull for at least half a decade and looks at the market from a long term view. He pointed out in a tweet that Bitcoin was up 15 million percent from date of launch, and there is still a long way to go.
Pal’s tweet comes despite critics saying that cryptos are fairly valued. For instance, the former Vice president of Development Economics and Chief Economist of the World Bank Larry Summers said that Gold at $7 trillion is around 1% of global wealth and added that cryptocurrency is approximately 5% of that.
BTC the ideal hedge
So why is Pal so optimistic and bullish about Bitcoin? Firstly, he believes Bitcoin will be the ideal hedge in case of a financial disaster. He argued that based on the price charts of many mainstream assets, investing Bonds, Diamonds, and Bitcoin can be an inspired move. This is because these assets store value for long periods of time. He also added while speaking on Stephan Livera’s Bitcoin podcast that the only asset that makes sense for millennials and younger demographics right now is Bitcoin.
He also had his say on the much talked about Libra digital currency. He said that he does not believe that Facebook’s Libra will become the world’s next reserve currency, but something similar will take its place. He also agreed with a follower who tweeted that a fiat digital asset will act as on-ramp for the cryptocurrency market.
The Bitcoin market has been rather slow the past couple of weeks and is currently trading at $9894.73. If Pal’s opinions are anything to go by then the slump back to below $10,000 is pull back that should be taken advantage of immediately.
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