All 24 Charts from Raoul Pal’s Introduction to the Exponential Age
Raoul Pal is the founder of Real Vision and Crypto Enthusiast. One of his best episodes on Real Vision is called “Introduction to the Exponential Age”. This episode is an organized stream of consciousness where Raoul explains the mental journey that led him to become a Bitcoin believer.
Here are all the charts presented in the episode. In case you heard the episode on podcast, you can see the charts here.
Watch the Video
If you want to see the episode “Raoul Pal’s Introduction to the Exponential Age,” you can watch it below.
#1 – “The Best Chart Pattern in the World”
This chart shows the collapse and liquidation of Bitcoin at the start of 2021. This is when Pal loaded up on as much BTC as he could.
US Dollar Index and S&P 500 (charts 2-3)
#2 US Dollar Index Appears Range Bound
The US Dollar Index (DXY) Chart was expected to break lower due to rampant inflation, but it appears range bound as compared to other currencies.
#3 Equities Market Increased Although Volumes decreased
Bitcoin Outperforms all other Asset Classes (charts 4-8)
Bitcoin was about to outperform every other asset class when evaluating relative asset class prices. Any low-supply asset was going up in value in dollar terms, but staying flat in relative value since 2008.
#4 Bitcoin Price
#5 S&P 500 vs. Bitcoin Ratio
Bitcoin outperforms the S&P 500.
#6 NASDAQ vs. Bitcoin Ratio
Bitcoin outperforms the NASDAQ.
#7 Gold vs. Bitcoin Ratio
Bitcoin outperforms gold.
#8 Real Estate vs. Bitcoin Ratio
Bitcoin outperforms the Shiller Index.
Comparing Asset Classes to the Federal Balance Sheet (charts 9-13)
#9 Bitcoin vs. the Fed Balance Sheet
The fed balance sheet is “the purest expression of monetary printing”. This chart shows Bitcoin outperforming it.
Only Bitcoin and the NASDAQ are the asset classes outperforming monetary printing.
#10 S&P 500 vs. the Fed Balance Sheet
Market fell 80% in 2008, then traded sideways.
#11 Gold vs. the Fed Balance Sheet
This chart mirrors the one above it. Both Gold and the S&P 500 experienced the same behavior with relation to the fed balance sheet.
#12 Real Estate vs. the Fed Balance Sheet
This chart mirrors the two above it. You can see that the Shiller Real Estate Index also dropped in 2008 and has traded sideways since then.
#13 Gold vs. the S&P 500
Taking a break from the fed balance sheet, Raoul evaluates the S&P 500’s price compared to Gold and sees that it doesn’t look that expensive.
Measuring Inflation using the Consumer Price Index (CPI) (charts 14-15)
Some goods increased in price due according to the Consumer Price Index (CPI) due to inflation.
#14 Cost of Healthcare according to CPI has increased
#15 Cost of Education using CPI
The cost of education was driven up by the baby boomers, then it lowered as Gen Z is a smaller generation with less total demand for college education.
Only 2 Assets have outperformed Monetary Printing since 2008 (charts 16-17)
#16 Bitcoin Outperforms Monetary Printing
This means that bitcoin is offsetting the debasement of currency.
#17 The NASDAQ Outperforms Monetary Printing
Looking at International Indexes (charts 18-20)
#18 MSCI World Index vs. G4 Balance Sheet
MSCI World Index has been trading sideways. This is the same pattern happening with asset classes in the US.
#19 Venezuelan Stock Market
The Venezuelan Stock Market appears to be having exponential growth upon first look.
#20 Venezuelan Stock Market vs. US Dollar
However, when compared to the US Dollar, it is evident that the market has collapsed.
Network Effects (charts 21 – 24)
#21 No. of Ethereum Wallet Addresses demonstrates Network Effect
Although Ethereum is not a competitor to Bitcoin, it is the basis sof the internet of value. It is breaking ground on the Internet of value. This shows Metcalfe’s Law.
#22 Bitcoin vs. Metcalfe’s Law Value
The Price of Bitcoin follows the trend line for Metcalfe’s Law.
#23 Bitcoin vs. Ethereum Adoption
Although Ethereum has a similar trend line as Bitcoin (following Metcalfe’s law) it occurs earlier and faster than Bitcoin.
#24 Bitcoin vs. Ethereum Starting at 5M wallet Addresses
After rebasing Bitcoin and Ethereum to the point where each reached 5 million wallet addresses (the moment where network effects took hold) the prices and chart patterns each were identical. This mirrored pattern on two different assets happened 4 years apart.
Introduction to the Exponential Age
These are the graphs from Real Vision’s Introduction the Exponential Age. They tell a compelling story about the asset classes that have stagnated since 2008, the effects of inflation on the US dollar, and the rise of Bitcoin as a superior asset outperforming nearly all other asset classes.