Famous economists Raoul Pal and Nassim Taleb made critical predictions for Bitcoin and altcoins. Raoul Pal’s statements are that crypto and technology stocks will outpace other stocks.
Experts predict how recession will develop for Bitcoin and altcoins
Raoul Pal, macro guru and CEO of Real Vision, has been speculating about a massive loss of wealth that he says could bring radical changes to the financial landscape. Pal told his 962,500 Twitter followers that the current economic slowdown will likely result in an economic contraction to pre-Covid levels. The former Goldman Sachs executive says baby boomers with the biggest fortunes in the US face limited options for dealing with a potential recession.
Options for Boomers: Annihilated retirement value, or annuities eroded by inflation, or quantitative easing (EQ) forever. This in turn leads to more debt to offset it for those with low pensions or savings… It also leads to the need to devalue debt through QE… As a result, it ruins everyone who is younger, even poorer in terms of purchasing assets.
Pal says such an economic environment could force younger generations to devote their wealth to the crypto and tech market. Ultimately, the economist thinks 20 years of negative interest rates are on the table as they create room for debt reduction and asset prices to rise.
Last month, the macro expert said that he thinks Bitcoin and the crypto market are in a long-term opportunity zone, although there is still more pain:
But could things get worse? Definitely. But for my investment framework, we are in buy territory… right next to the two standard deviation [logarithmic] regression channels.
Nassim Taleb reiterates Bitcoin’s failure as a hedge against inflation
According to Nassim Taleb, author of Black Swan, even if Bitcoin manages to hit $100,000 in another bull market, it will still be a failure. The famous mathematician explains that Bitcoin has failed as a hedge against inflation. As you follow on Kriptokoin.com, Taleb believes that the cryptocurrency winter could turn into a full-blown “ice age”. This means that prices will not recover for a long time.
Nassim Taleb addressed El Salvador President Nayib Bukele, who claimed in a recent tweet that Bitcoin is still cheap. The self-proclaimed “coolest dictator in the world” continues to gamble with taxpayer money. Bukele bought another 80 Bitcoin earlier this week, despite El Salvador, one of the poorest countries in the western hemisphere, losing more than $50 million due to untimely Bitcoin purchases.
In May, El Salvador’s Finance Minister Alejandro Zelaya dismissed the growing concerns about Bukele’s purchases of cryptocurrencies, explaining that they represent only a small part of the country’s annual budget.
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