Bitcoin Outpaces Gold as Debasement Hedge, According to Raoul Pal

Raoul Pal, co-founder of Real Vision, has weighed in on the debate over which asset is better suited to protect against currency debasement. He argues that Bitcoin (BTC), not gold, is the more effective hedge due to its earlier adoption stage and potential for growth.

Pal made this comparison during a September interview on the Wolf Financial Show, where he discussed how debasement quietly erodes savings and wages. According to him, debasement is the dominant force behind rising asset prices over time, tied directly to liquidity cycles controlled by central banks and governments.

Pal estimates that debasement reduces the value of fiat currencies globally by roughly 8% annually, while wages typically track economic growth of around 3%. This gap explains why homes and other scarce assets have grown harder to afford for average earners. Bitcoin recently traded near $75,900, down about 2% over the past day.

Pal frames gold as base money with no ability to compound in value beyond what the broader economy already reflects. In contrast, he views Bitcoin as digital gold with the same scarcity but a much earlier adoption curve. He estimates that only two asset classes have consistently outpaced the debasement rate: crypto and technology stocks, tracked through the Nasdaq.