During a recent appearance on Keiser Report, macro investor Raoul Pal reiterated his prediction that the market cap of Bitcoin could reach $10 trln if it ends being the future of the financial system.
As reported by U.Today, Pal wrote that that Bitcoin had a decent chance of reaching $1 mln in the following five years.
Bitcoin is not meaningful yet
Despite ushering into the mainstream conscience during the peak of the 2017 bull run, Bitcoin is yet to become meaningful, according to Pal.
He thinks that Bitcoin, with its current market cap of roughly $175 bln, can be compared to an average of U.S. company:
For me, if it is the future of the financial system, that's the size of a company like Bed, Bath and Beyond or something.
However, the aforementioned $10 trln would be easily achievable if Bitcoin were to create a new asset class (not just a niche investment).
Hedge funds will follow
On May 8, American investor Paul Tudor Jones recently made a Bitcoin bet with his Tudor BVI fund.
Max Keiser, the host of the Keiser Report, predicts that other hedge fund managers could follow suit if Jones’ bet ends up being successful.
Pal believes that Jones could indeed convince other big players, including his fellow billionaire Stanley Druckenmiller, to get into Bitcoin:
If it does generate alpha, they're not gonna have a choice.
Jones, who singlehandedly reshaped the hedge fund industry, now has close to two percent of his net worth in BTC.
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