Bitcoin Beats Gold as Currency Debasement Hedge, Says Raoul Pal

Financial expert Raoul Pal argues that Bitcoin (BTC) outperforms gold as a hedge against currency debasement, citing its earlier adoption stage and potential for growth.

Pal estimates that currency debasement erodes savings by around 8% annually, with wages tracking economic growth of about 3%. This gap contributes to the increasing unaffordability of homes and other scarce assets for average earners.

The Real Vision co-founder frames gold as 'base money' with limited ability to compound in value beyond what the broader economy already reflects. In contrast, Bitcoin functions as digital gold but is earlier in its adoption curve.

Pal notes that only two asset classes have consistently outpaced the debasement rate: crypto and technology stocks. He points to the Nasdaq's 19% annual return over 15 years and estimates that crypto has compounded between 45% and 110% annually.