Raoul Pal, a former #hedge fund manager, thinks that this circumstance might further boost the power of #bitcoin as well as the #cryptocurrency industry as a whole amid a broad financial crisis that has seen several banking giants fall and more at risk.
In an interview with Anthony Pompliano that was published on March 20, Pal explained that he thinks the cryptocurrency market and Bitcoin could explode in the future, closely resembling the chart patterns from 2013, because of the public's declining trust in banks and the exodus into alternative systems as they learn about their advantages during crises.
“I think there is a potential setup here for Bitcoin and the whole crypto market actually, to be shockingly strong, more like in 2013 than 2019 [when] we had that big correction (…) partially due to the G5 central banks’ balance sheets that were contracting over that period of time, and it pulled back the crypto market.”
Pal, who left his job at the age of 36, said that he entered the Bitcoin market in 2013 as a result of his realization that there was no longer any faith in the banking industry following the collapse of the investment banking firm Lehman Brothers.
“When you realize that, in a bank, you don’t actually own your money, and people are now realizing that, and the Treasury and the FED are like ‘well, we’ll just pretend that’s okay,’ that drives people into this parallel financial system. I got into Bitcoin in 2013 for exactly this reason and have been an active participant in the market ever since.”
The former head of a hedge fund did acknowledge that Bitcoin's volatility was what led to skepticism regarding its potential to function as a wealth preservation instrument,
“because, in people’s minds, the time horizon is too short, if you hold it long enough, it does extremely well, it does better than the FED balance sheet, better than any other asset in existence.”
