While speaking in a podcast on July 29, 2019, Raoul Pal, former Goldman Sachs executive opined that Bitcoin’s market capitalization is unreasonably underpriced. According to Pal, even the least possible chance for Bitcoin’s market cap to equate that of the global money supply and global debt of $80 trillion will still land the Bitcoin’s market cap at $8 trillion.

Raoul Pal, Global Macro Investor, and Real Vision Group’s CEO is of the opinion that Bitcoin’s market cap is undervalued. The CEO outlined that even if Bitcoin had a low probability of hitting an $80 trillion market cap (for the global money supply and global debt), its current value shows that it is underpriced.

Specifically, he opined that a low probability of say 10 percent will place the crypto asset at an $8 trillion market cap. In the same vein, a lower probability of 1 percent would still see Bitcoin valued at $800 billion which is less than its market cap as of today.

Pal also said:

“You know, that’s how probabilistic frameworks work, and what it’s telling you is it’s ludicrously underpriced if any of these probabilities play out.”

Bitcoin, the cryptocurrency in question currently has a market cap of $178 billion which is a distance away from its all-time high of over $300 billion. It’s even far apart from its year-to-date high of $231 billion on June 26, 2019. Nonetheless, Pal is not the only one who believes that Bitcoin can do better and even overtake gold’s market cap.

Like Raoul Pal, the Winklevoss twins also affirmed that Bitcoin is a very undervalued asset. Earlier this month, the duo stated that Bitcoin is Gold 2.0 and the only way it can be said not to be undervalued is if it hits a market cap of $7 trillion. Only then will the digital currency trade at its true value.

On the other hand, Pal stated that Bitcoin isn’t money but the crypto asset is more of a store of value since it is used to trade. He further outlined that Bitcoin is a rare asset that trades and it is more of a store of value as well as an investment asset than money itself.

When asked what it would take for macro investors to adopt Bitcoin, Pal said he is unaware of anyone how hasn’t invested so far, however, they haven’t made investments as a fund. In his opinion, people are waiting for the launch of custody and ownership abilities before fully diving into the crypto space.

The post Former Goldman Sachs Executive, Raoul Pal Believes Bitcoin Is Currently Too Cheap appeared first on ZyCrypto.

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