Your Crypto Will Explode Ahead of the Most Significant Deflationary Shock the World Has Ever Seen (Raoul Pal)
Due to an unprecedented event, you’ll witness tremendous exponential potential.
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The effects of inflation are becoming glaringly obvious.
As a result, the current cost of living and the antidote of increased interest rates have your investments by the go-nads.
Despite the recent Crypto rally, I still need to be convinced we’re out of the woods as the financial system deteriorates.
You might feel like Cryptocurrency is in a different solar system, but the situation couldn’t be more dire for the economy.
Bank failures.
Record inflation
Highest interest rates in decades
The receipt for your weekly shop is becoming eye-watering.
Raoul Pal, a famous macro investor and economic wizard, says we’re in for another shock. Something people aren’t even considering, and it’ll directly impact your Cryptocurrency investments.
It’s the exponential growth of AI.
It has two significant effects on Cryptocurrency:
When computers and robots start doing more human jobs, the increased productivity at a lower cost basis will create deflation (Good for crypto)
The potential for blockchain to verify authenticity because of deep fakes will have increased demand.
It’s a recipe that could tokenise culture.
When you combine AI computing power that rapidly increases its knowledge and can learn independently, you start thinking human labour will lose significance.
Heck, you might even think humans lose their relevance too.
It’s already happening.
Significant job losses and layoffs are coming because businesses are batoning down the hatch for an Armageddon recession and saving on costs.
Pal sees things differently and says a recession is ‘priced’ into the market, and we’ll see more job losses. Still, we are witnessing an exponential rise in technology that threatens to overtake one of our significant purposes on Earth.
Productivity.
Robots and automation have the potential to replace human workers in numerous industries. As machines advance and become more efficient, they gradually take over human productivity.
The displacement of jobs would lead to decreased labour costs and lower prices for goods and services.
Blockchain technology is on the verge of becoming incredibly vital due to the rise of deep fakes and AI. Deep fakes are manipulated videos or audio that appear genuine, making distinguishing between real and fake content challenging.
Instances of AI identity theft are on the rise, and they’re getting more believable by the day. Public figures have been the main targets. President Biden was recently portrayed in drag, endorsing Bud Light, and Trump was teaching tax evasion in an Albuquerque nail salon.
The internet is the gift that keeps on giving. As much as I enjoy a good laugh, the dangers of trickery and deception stare us in the face.
While you can tell, it’s not them, the voices in the videos are eerily similar to Trump and Biden.
It poses a significant threat to trust and authenticity.
Blockchain can provide a solution by creating a decentralised and immutable ledger that can verify and validate information, making it harder for deep fakes to deceive people.
Buckle up, strap yourself in and let’s get into it.
What Does This All Mean for Crypto?
According to Raul Pal, many analysts and investors in Cryptocurrency and traditional markets overlook a crucial aspect. The widespread adoption and proliferation of AI and Robotics will cause prices to drop significantly, and we’ll likely experience deflation.
This idea is supported by major companies worldwide, already replacing thousands of workers with AI technology.
Raoul Pal — Source
“Humanity is witnessing the dawn of a new Renaissance where humans are becoming relatively less essential. With the continuous improvement and increased efficiency of robotics, we can observe a significant decline in the cost of labour, goods, and services.
What does this mean, and why is it relevant to Crypto?
Well, if we experience deflation instead of the expected inflation, it will serve as a signal to the Federal Reserve and central banks to start reducing interest rates and increasing the printing of money to stimulate the economy.
When this occurs, the assets with the highest performance are associated with higher risk, primarily technology stocks and cryptocurrencies.”
AI Is Estimated To Replace 85 Million Jobs by 2025
This year, companies have announced to cut 417,500 jobs, a significant increase of 315% compared to the 100,694 cuts announced during the same period last year.
It’s worth noting that this is the highest total of job cuts from January to May since 2020 (1,414,828 cuts).
Apart from 2020, it’s the highest number of cuts in the first five months of the year since 2009, when 822,282 were reported by May.
Job losses usually indicate less liquidity in the market and downward pressure on wages which should be better for inflation. Interestingly, in May alone, 3900 Americans lost their jobs due to the replacement by Artificial Intelligence.
It’s a significant moment in history, as it’s the first time AI has been pinpointed as the reason for job loss among workers.
Society Is About To Face Dramatic Challenges
Pal says it’s difficult to fathom the implications of quantum computing and its potential impact on humanity.
When you combine exponential computing power, vast knowledge, self-learning capabilities, and near-zero energy costs, the significance of humans becomes questionable.
We’ll face tremendous challenges in the age of exponential growth, not just with AI. We’ll struggle to grasp the concept of truth.
We have all these significant trends unfolding simultaneously, and for society itself, it becomes overwhelming.
Raoul Pal — Source
“This is the largest disinflationary shock the world will ever have, and it’ll keep playing out as these other exponential technologies become implemented.
Three years ago, I’d see a couple of Autonomous Vehicles, and now I see them every day, ten times a day.
I looked around me in New York City, and every car was an Uber, a taxi, a bus driver, and you’re like, ‘Oh my God, AI.’ All of this is the biggest disinflation shock the world will ever face.”
Final Thoughts.
AI is here.
It’s going to make Cryptocurrency and Blockchain technology more critical.
Inflation could be here for some time because too much excess cash floats around the system. Consumer spending is strong, and crypto prices are up.
For now.
Raoul Pal believes cryptocurrency growth will be exponential because of the deflationary shock of this new technology (AI) taking over our workforce.
Job losses to AI made up 1% of losses in May, which is relatively high for a new technology fresh out of the box.
If Pal is proven correct, increased AI adoption will reduce the cost of output, causing deflation and bringing consumer prices down.
Cryptocurrency responds to liquidity in the market and The Bitcoin halving event that happens approximately every four years (around April 2024).
A high-speed collision with AI could be Crypto’s Netscape moment.
All are creating the perfect recipe for exponential growth.