RAOUL PAL: Bitcoin is a ‘mania’


Raoul Pal
Raoul
Pal

Real Vision
Television


The price of Bitcoin has risen by 210% since March to over
$2,900… and one of the world’s most successful investment
strategists is warning investors to stay away.

Speaking at the Mauldin Economics’ Strategic
Investment Conference
, Raoul Pal—author and publisher of
The Global Macro Investor, an elite macroeconomic and
investment research service—said Bitcoin’s explosion upward is
mania.

Bitcoin Is a Bubble

“The explosion [in the price of Bitcoin] is mania. It’s
people looking for a rate of return. It’s in the bubble phase.
[Bitcoin] goes through this periodically… it rises several
hundred percent, and then collapses.”

In December
2013
, Bitcoin ran up to over $900 and subsequently collapsed
to below $250… it would take three years for the price to again
reach those highs.

Exponential Moves Always Blow Up

Pal, speaking in an exclusive interview with Mauldin
Economics
, made ten-times his money on Bitcoin and thinks now
is a good time to get out.

“This is the most exponential move we have seen. I don’t know
how far it goes, but I sold out last week… and I’ve
[owned Bitcoin] since it was $200.
Anything that moves
exponentially, always [blows up].”

However, Bitcoin’s meteoric rise isn’t the only reason The
Global Macro Investor
exited his position.

Only 21 Million Bitcoins? Not necessarily.

“Bitcoin was supposed to be a store of value, you couldn’t
mess with the formula… and now they are talking about a ‘hard
fork’ changing it?”

A feature that has attracted many investors to Bitcoin is its built-in
scarcity
. It’s widely thought that only 21-million Bitcoins
can ever be ‘mined’ into existence.

However, senior developers and miners are now contemplating a
‘hard fork’ which would split Bitcoin in-two and allow for the
creation of more Bitcoins.

“Even if they don’t change the formula, the fact that they
could? That’s enough to say it’s not a long-term store of
value.”

Pal says a recent
development in India
also changed his views on the
crypto-currency.

Could “India Stack” Replace Bitcoin?

“India introduced a frictionless payment system, [something]
that everyone in Bitcoin was working on… this was [Bitcoin’s]
great project and India went and did it for 1.1 billion people,
fifty-times faster than Bitcoin and its rolled out and working
now.”

Pal is talking
about “India Stack,”
which will soon process more
transactions than Bitcoin ever has.

India Stack allows users to open a bank account, mobile phone
account, or share medical records at any hospital or clinic in
India with your fingerprints or by retina scan.

In the March edition of The Global Macro Investor, Pal
said of India Stack:

“This revolutionary digital infrastructure will soon be able
to process billions more transactions than Bitcoin ever has. It
may well be a Bitcoin killer or at best, provide the framework
for how blockchain technology could be applied in the real
world.”

What About Blockchain and the Future of Finance?

For Raoul Pal’s thoughts on the technology behind Bitcoin, the
financial system, cashless societies, and more, watch the full
interview below.

 

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Article source: http://www.businessinsider.com/bitcoin-price-is-a-mania-2017-6