Raoul Pal: "The 26x Opportunity EVEN Bigger Than Bitcoin"

Summary

AI is exploding faster than any prior technology, but macro investor Raul Pal argues the real investable opportunity is blockchain. While AI’s value often sits inside private firms, blockchain offers public, verifiable digital ownership that lets anyone participate. Pal traces his conviction to the 2008 crisis and Bitcoin’s proof-of-ownership, then highlights smart contracts, tokenization, and stablecoins as rails that can absorb global finance. He warns against gambling on speculative tokens and advocates buying high-quality network assets and holding. Pal projects crypto could grow from roughly $4 trillion today to $100 trillion by 2034, democratising wealth and underwriting the future of money.

Takeaways

• 😀 AI is advancing at an unprecedented rate, outpacing previous technologies like the internet and Bitcoin, transforming industries and society at large.
• 🤖 Raul Pal argues that AI, though groundbreaking, is not the best investment. Instead, he believes blockchain offers greater value for the future.
• 💡 Blockchain allows for digital ownership and verifiable value, opening up opportunities for everyone to invest in the next technological revolution.
• 📉 Despite the rapid rise of AI, the wealth being generated in AI-related companies is mostly concentrated in venture funds and private firms, leaving most people without access.
• 📈 Raul Pal sees blockchain as the foundational layer for the future of finance, where anyone can participate in owning global financial infrastructure.
• 💸 Cryptocurrencies like Bitcoin and Ethereum have proven to be the best performing assets of modern history, with Bitcoin up 64 million percent since its inception.
• 🌍 The global financial system is moving toward digital ownership, with blockchain technology becoming the core infrastructure for everything from stocks to digital currencies.
• 💼 Blockchain’s transparency, efficiency, and programmability are attracting traditional financial markets, with companies already exploring crypto networks for asset management and payments.
• 🔮 Raul Pal predicts that by 2034, the total value of blockchain networks could reach $100 trillion, becoming one of the largest asset classes in human history.
• 🚀 Blockchain has already reached a $4 trillion market capitalization, with Pal projecting it will continue to grow rapidly as more financial systems adopt its technology.
• 🌐 As AI continues to expand, it will rely on blockchain to provide a native financial layer, making it a vital component of future technological infrastructure.

Q & A

How has artificial intelligence evolved over the last two years?

In just two years, AI has rapidly advanced from simple chatbots to highly sophisticated systems capable of generating scenes, writing software, designing buildings, composing music, and even creating full-length videos. This expansion is happening much faster than previous technologies like the internet and Bitcoin.

What is Raul Pal's stance on investing in AI?

Raul Pal acknowledges that AI is growing faster than any technology in history, but he believes it is not the best investment. The reason is that the most valuable layer of AI, such as the models and infrastructure, cannot be owned by the public.

What does Raul Pal see as the real investment opportunity?

Raul Pal believes the real opportunity lies in blockchain technology. Unlike AI, blockchain provides open access and allows anyone to own shares in the networks that will handle global payments, digital assets, and machine-to-machine transactions, making it a more accessible and investable technology.

How does Raul Pal compare blockchain to Bitcoin?

Raul Pal sees blockchain as the foundation enabling AI and other technologies to function, comparing it to Bitcoin as a transparent and verifiable system of digital ownership. Bitcoin, as a decentralized currency, showcased how trust and ownership could be proven without intermediaries, and blockchain expands on this concept beyond just currency.

Why does Raul Pal view blockchain as an important part of the future financial system?

Blockchain is seen as crucial because it operates without intermediaries, ensuring transparency, security, and efficiency. As financial institutions, governments, and businesses increasingly use blockchain for transactions, it is becoming the infrastructure layer for global finance and digital ownership.

What historical event led Raul Pal to explore alternative financial systems like Bitcoin?

During the 2008 financial crisis, Raul Pal witnessed the collapse of major institutions like Lehman Brothers. This exposed the fragility of the existing financial system, where ownership of assets and money was often an illusion. This experience led him to explore Bitcoin as a new, decentralized way to prove ownership and build trust.

What role does blockchain play in the current financial system?

Blockchain is becoming the backbone of the global financial system. It offers a more efficient and transparent way to handle transactions, with the potential to replace traditional stock exchanges, bond markets, and even central banks' systems. It's also paving the way for stablecoins and tokenized versions of fiat currencies.

How is blockchain impacting corporate and government systems?

Corporations are beginning to move their financial systems to blockchain due to its efficiency, speed, and transparency. Governments are also exploring blockchain to improve payment tracking and ensure more secure, verifiable transactions. This shift is making blockchain the future of global finance.

What is Raul Pal's bold prediction for the future of blockchain?

Raul Pal predicts that blockchain could reach a $100 trillion valuation by 2034, making it one of the largest asset classes in human history. This projection is based on current adoption rates and the growing integration of blockchain into global financial markets.

How does the growth of blockchain compare to the internet's early days?

Blockchain is growing at twice the speed of the internet's early adoption. While the internet took several years to reach 5 million users, blockchain reached that milestone much faster, and its growth trajectory is steepening, making it the fastest-adopted technology in human history.