Bitcoin Is The “Hardest Form Of Money” Ever Created

Bitcoin’s price continues to drop and investors’ biggest fear is that is will go below $10k.

The $10k level is a crucial one that triggers FOMO when BTC surpasses it, but it may trigger massive fear and uncertainty about the digital asset, if the price goes below.

It’s been just revealed that the CEO of Global Macro Investor, Raoul Pal, said that Bitcoin (BTC) is the best reserve and collateral asset that’s ever been created.

Bitcoin, the hardest form of money ever created

In a new report about the king coin, the former Goldman Sachs hedge fund manager said that he believes that BTC, with its permanently limited supply, is the “hardest” form of money created.

He said that as a reserve asset, it’s superior to gold in every metric due to the decentralized nature and the fact that the transaction history can be proven.

It’s also important to note that Pal predicted the 2008 financial crisis. He now notes that, in the current macroeconomic structure, government bonds serve as the “bottom of the pyramid” in terms of collateral for the world and the U.S. Treasury.

On the other hand, this devalues the collateral over the longer term and leads to debt spirals, Pal explained.

Bitcoin is a pristine collateral

Bitcoin, however, does not have this problem, according to the investor.

“Bitcoin is pristine collateral. The greatest form of collateral. Its blockchain ownership structure reduces the huge black swan of risk of who owns what. It is all recorded and more importantly, provable,” he said.

He also noted that all that Bitcoin needs to become the preeminent form of collateral is a curve that indicates future value, something that is already happening with the whole DeFi boom.

“The revolution in DeFi is doing just that, establishing a forward curve of future value. It is only at the money-market phase right now (short-term yield curve) but over time we will establish the time preference for Bitcoin over 30 years or more, just like bonds.”


Companies Mentioned

CoinMarketCap
CoinMarketCap

CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.

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Eduard Watson Author

An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.

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