The Bitcoin course is threatened with significant headwinds in the short term after the talks on the economic recovery in Washington have reached a dead end. The number 1 of all cryptocurrencies is also trying to fend off the news that the OKEx crypto exchange is suddenly pausing payouts.
The negative sentiment meant that the Bitcoin price was repeatedly unable to stay above the USD 11,500 mark. While the near-term outlook is uncertain, most crypto fans remain unfazed. In an interview a few days ago, Real Vision’s founder and CEO Raoul Pal explained on bitcoin-circuit.io his bullish opinion on BTC. In summary, according to Pal, the Bitcoin price should reach USD 1,000,000 within just five years.
The reasons for a Bitcoin course of USD 1 million by 2025
Raoul Pal said in an interview with Stansberry Research that the Bitcoin price will exceed the USD 1 million mark in the next five to six years. The argument is that there is an „enormous wall of money“ that will pour into the Bitcoin market in the coming years.
We’re going to go through two of those halving cycles and from what I know from all the institutions, from all the people I speak to, an enormous amount of money is going in here. It’s a huge wall of money, just the pipes aren’t there for people to do, and it’s yet to come, but it’s on everyone’s radar screen and a lot of smart people are working on it.
BTC’s current halving cycle is expected to last four years since May this year. The halving will reduce the amount of BTC miners receive as a reward per day by half. This means that the supply of BTC will be reduced while the demand increases. In addition to Raoul Pal, other market observers also see the halving as a catalyst for increasing the Bitcoin price.
Regarding the wall of money that is supposed to drive the Bitcoin price to USD 1,000,000, there have been a few examples in the last few months of institutions that have added BTC to their portfolio. Stone Ridge, a $ 10 billion asset manager, followed in the footsteps of MicroStrategy and Square earlier this week and bought 10,000 BTC (worth $ 115 million at the time) as part of their treasury reserve strategy.
Pal believes that the seven-figure rise in the Bitcoin price will not be due to the collapse of the world, but rather to the fact that the cryptocurrency is being taken over by „really big pools of capital“.
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BTC is far better than gold
In light of the coronavirus pandemic, the global economy is faced with a variety of uncertainties. In the midst of massive money printing and skyrocketing negative interest-bearing global debt, investors are increasingly turning to safe havens like Bitcoin and gold to protect their investments.
The Bitcoin price has seen a brilliant rally this year with an increase of around 50% since the beginning of the year. The gold price has also developed quite well with an increase of 25% over the same period.
However, according to Pal, Bitcoin is the safer choice. Real Vision’s CEO is currently invested in gold, but plans to switch the yellow metal to BTC in the near future. This is simply because he is “100% sure” that the Bitcoin price will “massively outperform gold” in the future. „Why should I have a gold allocation in this case?“ Asks Pal sarcastically.