- Pal and Scaramucci are strong proponents of Bitcoin, noting its limited supply and high demand have driven unparalleled growth since 2012.
- Despite traditional investments performing well, Bitcoin’s returns outstrip those of the S&P 500 and NASDAQ, crucial for those nearing retirement.
- They argue Bitcoin protects against the inflation-driven debasement of currency, similar to gold, enhancing its appeal amidst economic uncertainty.
Raoul Pal and Anthony Scaramucci are Bitcoin fans through and through but can also explain why they are so bullish on BTC. Pal says that the mechanism of limited supply paired with high demand has consistently driven Bitcoin’s value upwards, making it the best-performing asset in recorded history.
Since 2012, Pal adds, Bitcoin has seen a 20 million percent increase and produced annualised returns of 150%. Other cryptocurrencies like Ethereum and Solana have also performed impressively, with returns of approximately 170% and 190-200% respectively.
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This extraordinary performance has captured widespread attention, especially among those struggling to create wealth.
Bitcoin A Decentralised Pet Rock?
Scaramucci asks Pal to explain why Bitcoin is not a decentralised pet rock or a Ponzi scheme, as Jamie Dimon, CEO of JPMorgan Chase, believes. He adds that many people, especially those in the older demographic, just don’t understand Bitcoin.
Pal says, forget about the technical stuff and consider why many people bought and still buy gold – to protect themselves and their wealth against central banks.
Since the 2008 financial crisis, central banks have been “printing” money to stimulate economies, leading to currency debasement where a dollar buys less over time, Pal explains. This affects savings, requiring assets to overcome an annual ‘hurdle rate’ just to maintain value due to currency debasement and inflation, he adds.
Now when you look at what’s happening with the debasement of currency, they’re debasing currency by about 8% a year on average amongst all the global central banks.
Raoul Pal Traditional Investments Do Well but Are Outperformed by Bitcoin
He emphasises that traditional investments like the S&P 500 and NASDAQ have performed well, but cryptocurrencies have emerged as a superior option, offering substantial annual returns of around 150%.
This makes them especially valuable for older individuals concerned about maintaining purchasing power into retirement.
Because nobody wants to be broke when they’re 85 years old. That’s everybody’s biggest fear.
Raoul Pal Not convinced?
Scaramucci cites Anthony Pompliano, to many simply Pomp, who said that since January 2000, the purchasing power of the US dollar has declined significantly, largely due to the effects of inflation.
Over this period, inflation has cumulatively eroded the value of money, meaning that what could be bought with a dollar in 2000 costs more in today’s terms. Specifically, the dollar has lost about 22% of its value.
That’s almost a quarter – let that sink in!
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