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Largest Wealth Transfer In History?


Raoul Pal knows his stuff.

According to new reports, the macro analyst believes that the biggest wealth transfer in history is going to take place piggybacking on the crypto market, but is he correct?

A closer look at his various analyses shows that he is banking on this happening due to the exponential increases common across cryptocurrencies.

Traditional markets and wealth growing vehicles average at about a 8-11% yearly return, and for some vehicles like real estate it may even be less.

Businesses are also typically capital and labor intensive, and while their returns are typically higher than that of the stock market or real estate, they typically fail to capture exponential returns.

Are we truly in the exponential age of investing, or will the crypto market correct, and enter a period that brings it more in line with the traditional returns we all expect from the markets?

Take a look at what Raoul has to say, and decide for yourself:

Daily Hodl gave us some insight into Pal’s perspective:

“What is happening is a parallel financial system – and even more than a financial system, it’s the new digital architecture of the world – is being built. There’s a new promised land and people are migrating across at unbelievable speed.

All my old clients and friends from the macro-world are now living in this new world. Virtually none of them are left in macro because the returns are so big. The opportunities – the ability to be optimistic and not pessimistic, while keeping one eye on the kind of burning city of the old, which is the old financial system, but going to this new beautiful world – it’s the discovering of the Americas all over again.

And it sounds hyperbolic but it’s not. I think it’s gonna be the largest redistribution of wealth in all recorded history in the shortest period of time.”

Medium featured this article from The Data Driven Investor which seemed to agree with Pal’s assessment:

Blockchain technology has completely changed the landscape, you have whole lending systems with Aave being one of them, insurance systems that are being used on the blockchain.

De-Fi has provided everybody with an amazing opportunity to get good interest on savings, which has not been possible before. If you have savings that are digital anyway then there is no point keeping them in a bank, it makes no sense with the ridiculously low interest they provide.

You could instead just put it in a stablecoin that is pegged to the dollar like Tether and DAI just to name a few and receive amazing interest rates of around 8%. You would only need it in a bank when you are going to buy something physical with it. Basically, the banks are in the mud and they know it.

A whole financial system is being built right in front of our eyes and there are still so many people that are skeptical and worried right now that will come into the frame as we go along.

We all know that the crypto space is not risk-free and it goes into cycles as well. However, what we have been able to establish at this point is that when eventual crashes happen it doesn’t crash back to the mean but to the exponential moving average. Since the asset increases exponentially, we know that every “crash” will most likely have a higher bottom than the previous one.


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