Investor Raoul Pal Thinks Bitcoin Price Will be $100,000 or even $1Million

According to Raoul Pal, the Global Macro Investor co-founder, bitcoin is likely to achieve value of $1,000,000.

Buying bitcoin is something Raoul Pal strongly believes in, especially because he thinks we are at risk of losing faith in money. Photo: Real Vision Television

Buying bitcoin is something Raoul Pal strongly believes in, especially because he thinks we are at risk of losing faith in money. Photo: Real Vision Television

Global Macro Investor co-founder, Raoul Pal, suggested bitcoin will value $100,000 or $1,000,000 in the future.

In a recent interview, Pal said:

“I did some analysis a while ago. It was to try and create a valuation framework that gives some value to Bitcoin because nobody really knows that it’s worth.So I said OK well let’s assume it’s something like gold-There’s a finite amount of it. There’s a finite amount that’s been mined. The rest is underground. We kind of know how long it’s going to take before all the gold is mined or before all the Bitcoins. Put them in the same kind of equation we get a value of Bitcoin and that value is a million dollars. Now, you’ll never hear an analyst say this-but I don’t mind this-I could be wrong by 90%, and it’s still worth $100,000.”

Pal admitted the digital currency presents endless potential for traders and investors, but advised to invest the amount you are ready to lose.

In 2013, Pal wrote a letter to the Global Macro Investor Group, in which he recommended to buy and invest in the cryptocurrency:

“If you stuck $5,000 into Bitcoins and each Bitcoin did go up to a gold equivalent of let’s say, only 100 ounces of gold (not the potential fair value of 700), then at current prices your Bitcoin stash would be worth $3.3m. Now that’s what I call a tail-risk option. It’s either worth zero or it’s worth a truly outstanding amount of money.However, let’s use a broad guesstimate. One Bitcoin should theoretically be worth 700 ounces of gold or pretty close to $1,000,000, if we adjust existing supply of both to equal each other.”

Pal has recently compared bitcoin with gold, stating digital currency is a rare commodity:

“There’s a finite amount that’s been mined. The rest is underground. We kind of know how long it’s going to take before all the gold is mined or before all the bitcoins. Put them in the same kind of equation we get a value of bitcoin and that value is a million dollars. Now, you’ll never hear an analyst say this—but I don’t mind this—I could be wrong by 90%, and it’s still worth $100,000.”

The bitcoin’s price volatility is among the main concerns of digital currency users today. But according to Pal, it is not a problem. Bitcoin is not likely to go away as it is still in its development stage and there are too many people who have invested in it.

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