Raoul Pal: Bitcoin a Better Hedge Against Currency Depreciation Than Gold

Raoul Pal, co-founder of Real Vision, claims Bitcoin (BTC) is a better long-term hedge against currency depreciation than gold. He asserts the asset has greater growth potential due to being in an early adoption phase compared to metals.

Pal made these remarks during his September appearance on the Wolf Financial Show, where he outlined his framework for how currency depreciation quietly erodes savings and wages over time. He explained that currency depreciation—driven by central banks increasing money supply—reduces purchasing power steadily, with nominal currencies losing about 8% of value annually worldwide. Wages typically grow at around 3%, tied to economic growth.

This gap, Pal argues, makes scarce assets like housing increasingly unaffordable for average earners. Recent Bitcoin trading near $75,900—with a 2% drop over the past day—was noted in BeInCrypto data.

Pal views gold as already reflecting economic value without compounding growth, while Bitcoin, as digital gold, shares similar scarcity but is at an earlier adoption curve. He summarized his point: 'Bitcoin is the only asset class that has consistently outperformed currency depreciation over time.'

He cited Nasdaq’s 19% annual return over 15 years and estimated crypto’s compound annual growth rate between 45% and 110%. Traditional assets like gold, real estate, and others generally match but do not exceed currency depreciation rates. Pal’s view aligns with a growing macro-investor trend linking Bitcoin price movements to the currency depreciation trade.

How long Bitcoin can sustain this adoption curve remains uncertain, though gold’s rise could influence investor valuation of both assets by 2026.