Goldman Sachs hasn’t always been kind to bitcoin, but according to a former Goldman Sachs hedge fund manager – Raoul Pal – the price of bitcoin is likely to skyrocket relatively soon, and he predicts a $1 million price for bitcoin in about five years.
Raoul Pal – Bitcoin Will Explode in Five Years
At first glance, most analysts are probably hoping this isn’t a joke, and that Pal can be taken seriously. After all, it’s not like this is the first million-dollar prediction that’s headed bitcoin’s way. Remember John McAfee? He spent years claiming that the price of bitcoin would reach $1 million in the year 2020.
Not only did this not happen, but bitcoin has been hit with more volatility this year than arguably any other point in time, with the price falling down into the high $3,000 range in late March before striking its current $11,300 price.
In addition, it may be a little hard for people to trust Pal’s words considering he comes from Goldman Sachs, a company that has been notoriously sneaky when it comes to bitcoin. Not too long ago, the company announced it would hold an online seminar discussing alternative assets. Some of these were to include gold and bitcoin.
Naturally, this excited many people, but when they logged onto the seminar, it became clear that the enterprise was no fan of BTC, and it spent the next hour or two talking about why BTC was a useless asset and why people should not be investing in it.
But Pal’s thoughts appear to be quite different. In a recent interview with Stansberry Research, he commented that bitcoin is likely to explode in the coming years given that many institutions are now piling tons of money into it, and he doesn’t think this trend is going to stop anytime soon. He says:
Yeah, I think [$1 million is] about right. Just from what I know from all the institutions and all the people I speak to, there is an enormous wall of money coming into this. It’s an enormous wall of money. Just the pipes aren’t there to allow people to do it yet, and that’s coming, but it’s on everybody’s radar screen and there’s a lot of smart people working on it.
As the Economy Recovers, the Coin’s Reputation Will Expand
Pal is the co-founder and CEO of Global Macro Investor. He also commented that the economy is going to need a lot more time to recuperate from the coronavirus pandemic, and thus he’s convinced bitcoin’s reputation is going to grow heavily during this time. He states:
The economy is not going to recover for a lot longer than we expect. There’s no stimulus around and we’ve got more problems to come in Europe, the US and elsewhere, and businesses don’t have enough cash flow. They’re closing in droves, and that’s what I called the insolvency phase.