Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
According to reports, 98% of Raoul Pal’s liquidated net worth would be invested in Bitcoin and Ethereum in the ratio 80:20.
Raoul Pal, the CEO of Global Macro Investor and Real Vision has after months of declaring his support for cryptocurrency regulation and predicting a $1 million trading price for Bitcoin in the next five years finally decided to back his words with action. Pal has decided to liquidate his Gold to acquire Bitcoin and Ethereum. The former Goldsman Sachs fund manager did not specifically reveal the reason for such a bold decision, but it can be deduced from his previous assertions that he believes Bitcoin will most likely surpass its all-time high to rise to the moon.
According to reports, 98% of Raoul Pal’s liquidated net worth would be invested in Bitcoin and Ethereum in the ratio 80:20. A couple of months ago, Raoul Pal revealed that he initially had an equal amount of USD, Bitcoin, and Gold equities in his portfolio, however, he increased his Bitcoin holdings by more than 50% and even announced his intention to add more. Pal liquidated a portion of his cash allocation to buy more Bitcoins and hinted to liquidate gold to increase his BTC holdings.
With no disrespect to Gold, Raoul Pal believes that Bitcoin is going to outperform gold when it successfully breaks out from the pattern being created. His $1 million prediction has largely got to do with the wave of adoption in the pipeline. The recent announcements of retails and institutional investments mean there is a space for pension plans, endowments, and government allocations to go into Bitcoin. Pal also advised the Bitcoin community to make peace with the regulation in the pipeline.
The nature of Bitcoin that makes it difficult to subject users and investors under critical regulatory scrutiny pushes governments and bigger institutions away over possible tools for money laundering claims. In this context, bigger institutional and government investment would flow into the industry when it perfectly becomes guided by regulations.
Raoul Pal in a report stated that Bitcoin has been the only asset to overtake the performance of G4 Central Bank’s balance sheet.
In the future overview, Pal sees this continuing as trillions are expected to be released into the economy to save businesses. The faith invested in Bitcoin is growing among investors with the CEO of Venture Fund Social Capital and Chairman of Virgin Galactic Chamath Palihapitiya also predicting that Bitcoin would reach millions in the coming years.
Bitcoin has been said to get a lot of institutional investment in 2021 in response to the predicted inflation rise that would be caused by the stimulus expected to be released by the central bank. In this case, institutions would run to Bitcoin as it has a perfect ability as an inflation hedge. The likes of Guggenheim have started the move after filing with the SEC in a decision to put close to $500 million into Bitcoin.