Bitcoin has been named as a candidate for the only asset worth holding as a hedge against inflationary fiat currency. The leading cryptocurrency has consistently proved itself capable of offsetting the impact of the money printed by leading central banks.
Raoul Pal, the CEO of Real Vision and Global Macro Investors, says heâs increasingly confident of Bitcoinâs place in a portfolio with each passing day. Admittedly early in its story, Bitcoin has even been outpacing gold in terms of its performance versus rapidly devaluing fiat currencies.
Raoul Pal: âIrresponsibly Longâ on Bitcoin
The argument that Bitcoin makes the perfect safe-haven from inflation is nothing new. Countless analysts have made the case that Bitcoinâs strong monetary policy places it alongside other store-of-value assets.
SponsoredMany compare the cryptocurrency to gold, which pre-Bitcoin was the go-to asset for wealth preservation. Given its hard cap of 21 million, analysts often claim BTC is actually superior to the precious metal.
A recent Global Macro Investors report, tweeted by the investment analysis firmâs CEO, suggests that Bitcoin is indeed serving as a better inflationary hedge.
The report details the price of gold relative to the balance sheet of G4 central banks. It shows that even despite the recent surge in goldâs value, the precious metal has still underperformed by about 50%.
Meanwhile, Bitcoinâs price performance relative to the G4 central banksâ balance sheet shows a different story.
As noted by the report, the digital asset has âoutperformed the rise in the central bank balance sheetsâŠby a huge margin on almost any time horizon.â
GMI and Real Vision CEO, Raoul Pal, commented on Bitcoinâs use as a hedge against inflation. Pal stated that his belief in Bitcoin ârises every day,â adding, âI am now thinking it may not be even worth owning any other asset as a long-term asset allocation.â
Big Names in Investing Coming Around to BTC
Palâs comments echo those of Paul Tudor Jones. As BeInCrypto reported earlier this year, the famous hedge fund manager also made the case that BTC may be superior to gold as a store of value asset.
Similarly drawing attention to the creation of fiat money by central banks, Jones said that Bitcoin stands to benefit from an increasingly digital world. Additionally, he stated that he personally held between one and two percent of his assets in Bitcoin.
Unfortunately, Raoul Pal wasnât as forthcoming with his own BTC allocation. Instead, he cryptically described his position as âirresponsibly long.â
