Wall Street Expert Backs Bitcoin in the Face of a Looming Recession 

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In recent times, several experts on Wall Street and the Internet have raised their opinions on Bitcoin being a stable asset. With the talk of a recession looming on a daily basis, stock trading experts and investors have been running scared at the prospect of losing money, and Bitcoin has been mentioned by many as an alternative investment vehicle. 

The latest of these experts to throw his weight behind Bitcoin is Raoul Pal, a prominent economist, and former Wall Street expert. In a Twitter thread posted yesterday, Pal claimed that Bitcoin is a potential way for investors to get themselves insulated against a looming recession (or what he believed could even be a depression)

Pal, who previously served as the Head of Hedge Fund Sales at the U.K. office of banking giant Goldman Sachs, described Bitcoin as a precursor to the financial system of the future; one which will be much less fiat-based than what we have today.  

He predicted that a vast majority of the world’s assets are currently entering uncharted waters. To back up his point, he charted a potential yield collapse to -4 percent for the two-year U.S. Treasury. He added that the Commodity Index is on the verge of breaking through a key support level as well, pointing out that it just might coincide with a deflationary breakdown that interest rates have shown. 

While he added that all of those might be no more than a mere coincidence, the truth is that all signs point to a recession; one which all asset classes could be affected. However, to him, Bitcoin presents the possibility of achieving true stability. 

This isn’t the first time that Pal is touting Bitcoin as an investment vehicle. Early last month, he appeared on a segment of the Stephen Livera podcast, where he claimed that Bitcoin is worth betting on in the long term. 

On the podcast, Pal claimed that the potential reward for those who buy Bitcoin far outweighs any of the associated risks. He went on to predict that the Bitcoin market cap could even hit $8 trillion at some point in the future. 

“So if it’s worth 80 trillion dollars, let’s say you have a 10% probability, that’s 8 trillion dollars. It’s currently worth 200 billion dollars. So even if there’s a 1% chance of it working […] what it’s telling you is that it’s ludicrously underpriced if any of these probabilities play out.”

He also referenced tweets from popular crypto analyst PlanB, which contained a few separate stock-to-flow models based on the tapering off in supply anticipated from the upcoming Bitcoin halving. Most notably, the charts suggest that there Bitcoin trading price could increase to about $100,000 after the 2020 halving and up to $1 million after 2024. 

Of these predictions, Pal claimed that the model shows the comparative advantage that Bitcoin has. He added, “And if you try and get your head around the digitization of everything, if you try and get your head around an alternative financial system, even if it has a low probability, right?”