Currency Debasement Sparks Surge in Crypto and Tech Investments
According to Raoul Pal, a former executive at Goldman Sachs, crypto is poised to outperform almost all other asset classes as currency debasement continues over the long term.
Pal suggests that the US may be entering a new phase of money printing to manage its significant debt following the collapse of First Republic Bank.
He cautions that most people will be unable to avoid the adverse effects of currency debasement by relying on pay raises or savings strategies.
Pal believes that the 99% will be responsible for paying off the debt and supporting bailouts, while the 1% will benefit from the increase in the value of their assets.
He explains that only tech stocks and high-quality crypto will likely outperform currency debasement, with crypto having the highest beta to global central bank balance sheets.
MOAR COWBELL AS ANOTHER ONE BITES THE DUST…
Well, it looks like $FRC will bite the dust this weekend, either ending up in the hands of the FDIC or a major bank (with FDIC/Fed support).
In an over leveraged world, where GDP isn't growing fast enough to pay the interest on the…
— Raoul Pal (@RaoulGMI) April 29, 2023
READ MORE: Ethereum: Price Experiences Decline – Possible Reasons
Pal suggests that other assets, including real estate, gold, SPX, bond yields, emerging market equities, and credit, will align with central bank balance sheets or underperform.
He emphasizes that Bitcoin was designed for this situation, and due to its fractionalization, it is accessible to everyone. Ethereum even offers a yield on top. This debt mutualization is a game you can choose to avoid.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
