Real Vision co-founder Raoul Pal says Bitcoin, not gold, is the better long-term hedge against currency debasement. Pal made the argument during a September interview on the Wolf Financial Show, laying out his framework for how debasement erodes savings and wages over time.
The Debasement Problem
Pal describes debasement as the steady loss of a currency's purchasing power as central banks expand the money supply. He estimates this process reduces the value of fiat currencies globally by roughly 8% annually, while wages typically track economic growth of around 3%.
According to Pal, this gap explains why scarce assets like homes have grown harder to afford for average earners. He frames debasement as the dominant force behind rising asset prices over time, tied directly to liquidity cycles that central banks and governments largely control.
Bitcoin's Adoption Advantage
Pal frames gold as base money with no ability to compound in value beyond what the broader economy already reflects. Bitcoin, he argues, functions as digital gold with the same scarcity but a much earlier adoption curve.
"[T]he digital gold is Bitcoin, but Bitcoin's earlier in its adoption," Pal said during the interview.
Performance Comparison
Pal argues that only two asset classes have consistently outpaced the debasement rate: crypto and technology stocks tracked through the Nasdaq. He pointed to the Nasdaq's roughly 19% annual return over 15 years, while crypto has compounded between 45% and 110% annually.
Gold, real estate, and other traditional assets, he said, tend to only track the debasement rate rather than beat it. His comments reflect a wider narrative among macro investors increasingly linking Bitcoin's price moves to gold as the debasement trade gains traction.
