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Bitcoin Is ‘Ludicrously Underpriced’: Ex-Goldman Sachs Exec

Anja van Oosterhout

Anja van Oosterhout | Jul 31, 2019 | 11:00

bitcoin price moon potential Bitcoin Investment

Bitcoin Is ‘Ludicrously Underpriced’: Ex-Goldman Sachs Exec

Anja van Oosterhout

Anja van Oosterhout | Jul 31, 2019 | 11:00


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Bitcoin’s market cap could explode to $8 trillion even under conservative estimates, former Goldman Sachs executive, Raoul Pal has said. 


Bitcoin Market Cap To $8 Trillion?

Speaking during his appearance on the Stephan Livera Podcast July 29, Pal, who is founder and CEO of Global Macro Investor and Real Vision Group, suggested the potential for Bitcoin’s value increasing was all but limitless.

The main barrier for commentators today, he argued, was simply getting their heads around the kind of numbers involved in the future. 

“…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? If you recreate a low probability of, let’s say, what’s the global money supply and global debt? It’s something like, I don’t know, call it 80 trillion dollars or something,” he said. 

“…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 working… what it’s telling you is (Bitcoin is) ludicrously underpriced if any of these probabilities play out.”

Degrees Of Bitcoin Buoyancy

Bitcoin has decreased its market cap in recent weeks in the wake of regulatory upheaval focused mainly on the US. At press time, the figure circled $174 billion. 

As Bitcoinist reported, forecasts of a giant leap in market cap even for the short term have come thick and fast as markets stage a broad recovery this year. 

In June, Arnie Hill, partner at Obsidian Capital VC Fund, said the current bull cycle alone could give way to a $1 trillion market cap.

Another version of market cap, known as a realized cap, meanwhile hit an all-time high in July despite BTC/USD prices shrinking since Hill’s prediction.

For Pal, the allure of Bitcoin’s potential forms an irresistible opportunity for major investors and institutions. 

“So that’s how crazy attractive it is, and that’s why it’s sucking in so many of these macro guys, because they’re like, ‘Damn, nothing else has this payoff,’” he continued.

This week meanwhile saw regular statistics compiler Willy Woo explain that recent bullish action came almost exclusively from such institutional interest. The main phase of the bull run, in longer terms, has yet to even begin. 

“…Mainly it was a cascade of short squeezes from quant fund activity that setup this rally,” he theorized on Twitter. 

“Long term investor buying during the rally has been small-ticket retail money; the true organically fueled bull season hasn’t started yet.”


What do you think about Raoul Pal’s Bitcoin market cap theory? Let us know in the comments below!


Images via Shutterstock, Twitter: @stephanlivera

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