Crypto in 2024 & BTC Price Predictions: Tim Draper & Raoul Pal!!

We are about to go through the Bitcoin Boom cycle expect 1 billion Cryptocurrency wallets JP Morgan Goldman Sachs they're all building on the Blockchain rails these are statements From a conversation I had with global Macro investor R pal and Bitcoin Billionaire Tim Draper Tim is known for Starting to buy Bitcoin at just $4 and Famously bought tens of thousands of BTC In 2014 from the US Marshall service R Previously a macro investor at Goldman Sachs is the founder of real vision and The author of Adventures in crypto Collectively Tim and R have years of Experience investing in cryptocurrencies And emerging Technologies so in this Conversation we'll discuss what Showstopper Concepts they've been Investing in this year how they've been Diversifying their portfolios and where They think the markets are headed next Oh and we also had to take the Opportunity to ask them their price Predictions for Bitcoin in 2024 this is a video that you don't want To Miss and this sounds like the the Perfect accelerator storm for for 2024 To be the next big adoption Market cycle R I'd love to get your outlook on on Next year and some expectations for the Crypto Market but also the the Macroeconomy that will go alongside that

Um sure my view my macro work was that The E the present State Economy is bottoming right Now um all the future forward-looking Indicators all bottomed uh Global Liquidity um Global Financial conditions They all bottomed last Year and the Market's priced in a Recession then we've still got markets That are cyclical pricing in a recession Now stuff like the Russell 2000 oil Markets commodity stuff but really all The forward looking stuff priced it in a While ago and it's been following Financial conditions on a Forward-looking Basis from all the work that I do I see Nothing but stimulus coming this year to Tim's Point there's you know stimulus is Another word for debasement of currency And they do it in a number of different Ways um the worst one the most pentious One is the printing of money and putting On the central bank balance sheet using The balance sheet to buy debt because What you're really doing then is pure Debasement of currency and most people Don't understand what it is They don't understand the fact that Their purchasing power in asset terms Goes down so assets optically go up in Value because the purchasing power of The dollar versus scarce assets goes up And you know crypto has been the best

Horse in that race technology has been Particularly good at offsetting if you Divide the um S&P by the central bank Balance sheet Zero Performance since 2008 gold zero in fact gold is negative Um real estate zero it's only NASDAQ Only technology and crypto that's Actually outperformed the debasement of Currency so it's really important what Horse you back so we're going into 2024 we've got sluggish economic growth I think inflation will continue to fall All year um because I think structural Issues within the economy from aging Populations to AI will actually surprise People to the downside with inflation so I'm not an inflation sticky person There's different types of inflation Right we're Talking asset inflation caused by Debasement of currency versus CPI Inflation in a election year the Government's job is to give out as much Candy as possible to voters that all They want to do is buy votes you will Always get stimulus since 2008 we had a great Reset um of the debt markets every major Government hit 100% of GDP in debt by 2008 that's the Europeans the Brits the Americans Japanese Chinese um and what they all did was cut Rates to zero in 2008 that was

Essentially a debt Jubilee it's like you Don't pay the interest on the debt That's really what it was so if you Don't pay the interest on the debt what Did they do they all refi all of their Debt so it's 100% of GDP and debt so all Economic growth essentially goes to Paying off the interest payments on the Debt so what you need to do is lower the Interest costs of the debt they did that And every government reset their debt to Three to five year that 3 to five years Cycle is the debt refi cycle it's Exactly how the economy has been working So you come into year um year four it's The down year that's when the economy Slows because rates have gone up because I have to try and refy what happens is Rates Then Fall they use the balance Sheet and they use the balance sheet to Pay off the interest of the previous Cycle and I've kind of proven that out Over time that four-year cycle is Exactly the same as the Bitcoin Haring Cycle why because Bitcoin came in 2008 It's also the same as the presidential Election cycle why stimulus right They're all the same thing so it is the Most observable economic environment of My 30 oddy year Career and it's so obvious what 2024 and 2025 are and that's more stimulus They're going to be cutting Rates if they screw it up and inflation

Does go up they will use yield curve Control which is printing of money to Maintain interest rates which Japan has Been doing but generally speaking it's a Year of stimulus in a year of Stimulus as investors we need to say Okay what's going to create the biggest Opportunity set the multiplier on all of This is crypto it it always outperforms All other assets particularly in these Moments and crypto again is is such a Beautiful thing this won't last forever But it's it's a gift for us because you Get three years where it's the best Performing asset on Earth that's through Macro crypto spring summer fall crypto Macro winter when the downside of the Debt refi cycle comes it's the worst Performing asset price on Earth and we Just keep repeating the lows are higher It's just an exponential you know Logarithmic Trend that keeps going Because of adoption so the other thing To bear in mind about 2024 2025 is okay We've now built the ETF which I think of As a trade deal between crypto land and Fat world it's not immigration into Cryptand because these people are using Centralized counterparts to do this as Opposed to myself who will use my leged Dev for Self Storage but we're going to Bring a lot of FDI foreign direct Investment and tourism income into Cryptand huge amounts of it because of

Because of the stimulus and the fact That it's the best returning asset price On Earth so we've got that to also Ignite this crypto economy on top of That Tim and many VCS like him have been Piled money in in 2020 and 2021 67 Billion went in that Money has been building applications Layers infrastructure layers all sorts Of stuff right a lot of this will come To Market some of it doesn't some of it Fails in the in the down cycle but There's a lot of stuff coming to Market And I so how I look at this is this Cycle as we go from 516 million wallets To I think a billion and Beyond in this Cycle alone that it's going to be in Everything everywhere all at once cycle All of the kindling is in place the Banks all the asset management firms are Both investors but also building on Blockchain Rails all of them so whatever Jamie Says and I've spoken to him directly About this that he's wildly interested In this space and they will you know JP Morgan Goldman everybody are building on These rails the big brands are building On the whale rails for web 3 we're Seeing a lot of that already in sports Teams car companies luxury brands I Think the Breakthrough of um salana Compressed nfts allowing for a million Nfts to be printed for minted for 100

Bucks means that's allows ticketing and Other breakthroughs of what we can use Nfts for because nfts are not just pfps And stuff like that um in addition the Ongoing rise of stable coins that's Basically a tokenized euro dollar market That allows somebody working in the rice Fields in the Philippines to own dollars Which is impossible for them um and then Just the ongoing adoption of crypto so I Know it sounds ludicrously bullish but That's where we are in the cycle I mean I've been in this in crypto since 2012 um and each time you just see it Grow and grow and grow as more Participants come and more use cases get Built [Music] Out and you'll never guess who is in the Car hello and welcome back to GM crypto Now we have so much fun and exciting Stuff coming up for you on today's show But first we need to talk about the coin Bureau deals page guy that's right Jessica because it really is the place To find the very best deals in crypto For starters you can find bonuses of up To $40,000 at some of the best crypto Exchanges and that's not all Jessica Because you can also get discounts on Hardware wallets sign up bonuses for Some of the top exchanges and trading Fee discounts of up to 60% amazing amazing guy where can people

Find this deals page well just head on Over to coin.com Deals or use the link in the Description amazing so these are your Market trends Tim I would love to ask The same question to you because as Ral Mentioned you have been flowing money in We also saw this year the launch of the Web three fund Draper gar and blockchain So what were some of the projects this Year that really stood out for you Landed on your desk that you thought wow This is a real a showstopper of a Concept Well I'm I'm really pretty excited about Stacks um and the reason Is here's here's the way I looked at it Um I watched the internet boom and bust And boom again and um and I watched how How the software industry grew even Before That and Microsoft created this platform And then everybody created all this Software on that Platform and that platform included then All these all these little companies Created clip art And little games and uh paint programs And all sorts of things and then there Was this one word perfect that started To really rock and Microsoft looked over There and then they created Word and then there was another one Called Lotus 123 that was a spreadsheet

And it was booming and Microsoft looked Over there and created Excel and then they saw PowerPoint Rising and they quickly bought it before It got too big and they tried to get Into it with money uh and they realized They couldn't do that they probably Eventually will have to buy into it too But it's um what happened was there was A platform and they let people do all Sorts of things and then they chose the Things that really mattered so I'm Seeing sort of the same thing happen With Bitcoin as a p as a Platform um sure all the a lot of the Experimentation went on ethereum and Salana and tasos and whatever Else but Now people are going hm okay so nfts are A big deal so we're going to create Ordinal on on bitcoin oh okay so defi is A big deal okay well we're going to have Defi on bitcoin okay smart contracts are A big deal we're g to move smart Contracts to Bitcoin I think that's happening and I Think there is a little bit it's Starting to happen a consolidation Around Bitcoin because as a platform Because um I don't know if you noticed But it when Bitcoin was at 40,000 the Last time ethereum was at 3,000 and now Bitcoin's at $40,000 and ethereum's at 2,000 um and all the way down uh the

Rest of the tokens are also um smaller Relative most of them are smaller Relative to Bitcoin the differential so I think that There is this slow steady Movement toward the all the important Applications going on bitcoin so I'm Kind of looking I most of what I've been Investing in although I mean we'll look At all sorts of things um have been Things that start to move the important Applications over to bitcoin so I think That that's a that's a really Interesting Trend and we're thinking It's going to go very much the way Microsoft did Uh if you're a retailer you don't say I Accept Tasos you know if you're uh um if you're Buying taking getting your first crypto Wallet um you don't say oh I I want to You know I want to own some Cardano it's um so there Is real I think it's just one of those Things where the strongest Brand and um and then people said oh Well Bitcoin Bitcoin moves slowly on the Blockchain blah blah blah but then in You know all these great entrepreneurs That uh R was pointing out all that um Technology has moved so now there's the Lightning Network um there's Stacks There's there are lots of things that Are making it so that it is not an

Energy hog and it is not Slow uh in fact with an open Node um I believe they can make Transactions as faster than the Visa Network so I I I think that most of Those old arguments Are moving out on the new arguments of Like hey let's standardize on bitcoin or Moving in um but we're open we're open To seeing whatever else is out there we We're looking for all these new Solutions I'm I'm a big fan of smart Contracts I can't wait for the moment Where I can raise all my investor money In Bitcoin invest it all in Bitcoin have Them all pay their employees and Suppliers in Bitcoin and their taxes and everything Else and have it all Completely um Uh accounted for audited whatever Without an accountant an auditor a Bookkeeper a transfer agent or tax Lawyer or whatever uh this will be of This new economy will be will have far Less Friction and I think that that's very Exciting and it's going to free Accountants and lawyers and Auditors up To do doing more um Proactive Work and I'm curious to ask both of you About your portfolio diversification Because I have a feeling they both might

Be slightly different uh so maybe R I Can start with you when it comes to Diversifying your portfolio what kind of Things are you looking at right now I'm A macro guy and so I tend to take more Concentrated bets you know I'm not Running other people's money yes I have An asset management firm that invests in Digital asset hedge funds that runs a Diverse portfolio of of uh hedge funds Because it's a fund of funds but Personally uh when I see extraordinarily High quality risk return opportunities In an identifiable macro Trend where I Can build a investment framework I tend To Super Concentrate so then for me it's it's It's a very concentrated bet so I'm Pretty much 100% crypto and I have been For a long time now and I make asset Allocations Um about weightings I don't really do And I've tried it in the past to try and Own a broader base of Diversified base Of tokens I just end up with shrapnel in My wallet that I don't care about I like To really focus on what I'm doing so my Big Focus for this cycle is salana and I've been that's been for the last year Um obviously I have a lot of eth I still Have some Bitcoin um and then I have a Few other tokens here and there but Really it's very concentrated bet on What I think is going to be the

Breakthrough for this cycle um and so Yeah I'm not Diversified at all so I'm a Terrible human being because I'm an Investment guy and I should have this Broad Diversified portfolio I'm not at All I'm a profit maximalist when it Comes to the opportunity set but a Philosophist when it comes to the Opportunity set that this whole Space Provides everybody in the way that Tim Said I love that and T That's fun what um I have Um it's really interesting The Venture Capital business I I invest in fact we Almost don't want to call ourselves Venture capitalists we kind of be Founder capitalist or something because The Venture Community got they they were Investing such huge amounts of Money um that they were kind of ruining Our companies by saying You know oh you need 10 million here's a Hundred million and uh and now they're You know They're suffering the the results of That but um in my business I invest in a Very Diversified portfolio of seed Investments very early Investments and Some of those trees grow and some Don't and the um and the winners become Very big and the losers or the the other Ones you know they sort of Fade Away in Our minds and so I end up with a very Concentrated

Portfolio so it starts out incredibly Diversified we invest in you know any Technology anywhere in the World where we think that there's a a Really interesting Market that could Could Happen and uh so that our approach is a Little bit different people say how can You be sure that given investment is Good and I go can't be Sure but in a diversified portfolio yeah You can Tim here's a question for you How long does Tim here's a question for You how long does it take from let's say You raise a new fund you have a lot of Seed Investments how long does it take Before you see some of these trees Really grow into something Well it depends on the the the hurdle You give it to I mean when we fund them They might be five or10 million Valuations to get to aund million Valuation is you know one thing but that Isn't quite enough for us to feel like We've done it so getting to a billion Dollar valuation or that might so a 100 Million might take them four Years a billion dollar valuation might Take him seven years and a 10 billion Dollar valuation might take them 15 Years so we do have a little bit of a Dilemma on when when we've got a winner Do we Distribute um that's a an issue we have

With our limited partners I'm my I'm my Biggest limited partner so um so they Kind of of Ride Along with me but I'm Very sensitive to people's needs where They say hey I really need the money Now do you think we're gonna get sorry Jessica I'm asking questions no please Go ahead please go ahead do you think We're gonna get any decent exits in Crypto in this cycle because we've had Very few we've obviously coinbase but You know there's quite a few larger Businesses around what are your views on That or do we have to wait longer you Think you know I think um coinbase is Gonna grow and I think um I think you'll Probably see Um I mean there are quite a few that got Pretty big and they didn't quite make it Through the window this Time um you know I think I mean public Companies are us usually ones that have Um a dominant position in something that Everybody needs so that would would be Ledger would have that so that could Possibly be a future IPO Um the uh Circle I guess Gemini Gemini Twins they might um have something to uh To go public at some point but I think That they're they're they've got to Shake through a few things before they Do and then um you know what's Interesting is is there are some of

These companies um Like ripio or the the one in Southeast Asia um in Singapore uh coin hako that Have gotten really big and there is some Question as to whether they um go public Or whatever and then crypto by its Nature is Liquid it's just some of these are Companies that are doing things for Crypto so either you're you're going for The gold or you're selling do you prefer The equity or the token or you're Indifferent what's that do you prefer The equity or the token or are you Indifferent because you know as VCS you Get the opportunity to do either both Together Separately I like to align with the Entrepreneur so what that usually means Is that we need to get if we're Investing in equity we need to get um The tokens if they come so we want to Make sure that we're that we basically Have the same relative Interest as the entrepreneur does to Both the equity and the Token that was something boy you Know I I'm I'm kind of good at asking The stupid questions and you know if if I have one superpower that's probably it And I'm willing to go ahead and ask now Wait a second how does that work and I Keep going and digging down and when I Saw these hypers creating oh we're gonna

Do this and we're gonna do that um I Would ask things like you know like to Um I didn't ask SPF this my partner did But um with some of the other Centralized tokens that we saw I said Okay so you're going to lend you're Gonna have people lend you their Bitcoin And then what are you going to do with It I mean just asking that question Simple question would have saved anybody From getting involved in teror Luna Would have saved anybody from being an SPF just but you have to kind of ask the Stupid question like because these Entrepreneurs do kind of they have a way Of sort of you know a shell there was a A shell game going on there for a while Where then I realized oh this is sort of Like they give you your equity and then They go ahead and they take the tokens Or they give you the tokens and they go Ahead and they take the equity and I so I wanted to make sure each time we Invest we kind of go after both of Them I think obviously it's few Exceptions To and obviously it's fed very well for You as well and I know that none of us Here have a crystal ball but looking at Some of the the fundamentals that we're Seeing now I would love to ask I Actually own three four crystal balls Because in my Show I have the show meet the Drapers

And we interview entrepreneurs and and Then we I ask all the guest judges what Do you think and you know then we go Through this and I say well you know I'd Love to speak up but we're going to Figure out who won this competition by Going to the crystal ball so we have all These crystal balls so I actually do Have a crystal Ball that is the secret so if we all buy Crystal balls we will all be Billionaires like Tim J for That's so I'd like to ask you both when It comes to 2024 predictions I've got Some statements here that are open-ended And you can interpret them as you wish But the first one and throughout this Conversation some of you have mentioned Stable coins next year what do you think The role of stable coins will be do you Think we will have a more Reliant role In certain economies for stable coins Will we see an increase in usability What are you expecting for next Year go ahead R so 87% of all World Traders in US Dollars whether anybody Likes it or not the US dollar is the Single most important monetary Thing and really dollars they're Restricted in who who can get access to Them so if you're in Argentina you have A problem trying to get hold of enough Dollars if you are in most countries Most countries have Capital restrictions

If they've got a weak Currency and the rise of stable coins it Really shocked me because at first I Just thought it was a a liquid onramp And off-ramp into Crypto and I was speaking to some Friends of mine in Singapore who who uh Run a big trading business there qcp and They would they said no no no no most of The business we see in stable coins is From corporates I'm like what it's like Yeah Indonesian corporates trading with Chinese corporates because they don't Have the settlement costs they've both Got Capital restrictions it takes a While to put the applications through They just use this I'm like really and Then you know I get my haircut and the Guy here is Filipino and all the Barbers Are all mad crypto punters I'm like why Are you guys why are the Filipinos so Into crypto he's like are we all used Stable coins because we have remittances And we send money home to our parents so We we use stable coins and you know we Want access to Dollars and it was that Trend is not going away and the more People who can will you know you've got Don't forget two gigantic economies Where crypto somewhat restricted right Now it'll reopen up which is India and China both 1.3 1.4 billion people um Both have currency issues in their own Rights so you can only think that this

Tokenized euro dollar market which is Offshore Euro dollars offshore dollar Market which is stable coins will keep Growing um and so I would say you know Tim one of the com companies I think Will likely be able to get an IPO window Is circle for that Reason Good Fantastic my my answer to this is Crypto oh wait I back at the stable coin Question um the role of stable coins I Think will be a bridge to Bitcoin um and I think the way stable Coins will operate they will be viable As long as the dollar is viable and then When there's a run on the dollar people Will move to Bitcoin uh but it but stable coins make A lot of sense it's an easy way to move Things Around and uh certainly currently and Probably for if if this is just for 2024 I think it'd be a good year for stable Coins um and then it'll but it'll be a Bridge to bitcoin and last but certainly Not least 2024 bitcoin price prediction I couldn't get you both on the line Without asking you both your price Forecast for one Bitcoin don't give Predictions anymore because you just get All you there is no upside all you get Is abuse when you're wrong there's Nobody nobody ever says yeah you were

Roughly right nobody ever says that it's Like if you get it wrong by $1 you're a Complete so I don't do predictions I will just say Bitcoin will trade a lot Higher at new alltime highs let's give It that Bitcoin will trade at one Bitcoin that's right oh good answer I Like that one you know um I said on uh Fox Business News in 2014 and Bitcoin was trading at I don't Know 600 or something and I said it's Going to be worth 10,000 in three years And it hit that number Exactly now that has been the bane of my Existence it was three years $10,000 almost to the Day and and then people keep coming back To me well what's the prediction now I Get people calling me hey wait no but You said you know what you've got four You know but I had enough hubris to Say okay I I'm GNA predict it again when It was at 4,000 I said okay 250,000 in Four Years what I didn't when I predicted That what I didn't expect Was how fearful And and Just old Thinking that the US would be I thought We because I think with an with a Receptive us we would be Having conversations like the ones I Have in El with the people from El

Salvador it's like hey you know have you Done a smart contract for this or have You you know is the blockchain used you Know are you is that thing blockchain Secure or Whatever I I think um instead we say oh Is that something that we can do you Know we're we're sitting there doing That and So so I think all that is is a Delay I'd call it the fear delay the you Know Old Government Delay and um and I would say that We that my number of 250,000 will probably Come pretty Soon so I'll stick with 250,000 we've already gone past my date Deadline so I'm Wrong um I have never actually Um discuss this with my crystal Ball but if you've got four of them Tim Certainly one of them's got to have the Right answer need to ask more questions No we need to have like consensus of the Crystal Balls um but I'll I'll say 250,000 I'll Say it hits 250,000 let's see 2024 yeah I think it'll hit 250,000 Um I mean there it'll be a range though I mean I think though you will see 250,000 I actually think that if it hits

250,000 that it'll go way past It um um but if it hits um you know we Are going through that cycle that um That rul was talking about we're I mean We're going through the boom Cycle I think it anything can happen Anything can happen yeah I think this Year I think this year we might see 250,000 Fantastic well that's all for today's Video my thanks to Tim and Ral for Taking the time to speak with me now if You learn something new let let us know By Smashing that like button if you want To keep learning then subscribe to the Channel and also ping that notification Bell so you don't miss the next one if You want to help others in then take a Second to share this video with them if You're inspired by Tim andal to start Your investing Journey then you can Check out the coin Bureau deals page It's got trading fee discounts of up to 60% and bonuses of up to $40,000 on some Of the best crypto exchanges and the Biggest discounts on Hardware w The link will be down in the description Well thank you so much for watching and I'll see you all in the next one this is Jessica signing [Music] Off