Volatility is the main attraction of Bitcoin

According to Bitcoin enthusiast Raul Pal, the volatility of the crypto asset is its main attraction, not its disadvantage, as this is what gives the cryptocurrency its exponential growth.

What gives Bitcoin an Advantage

The CEO of the analytical firm Real Vision Group, Raul Pal, highlighted volatility as the most important tool.

“People need to learn to adapt to such an unstable asset… it has such a big skew between risk and reward, ” Pal, founder and CEO, told the Reuters Global Markets Forum on Wednesday.

The former Cayman Islands hedge fund manager Goldman Sachs said he has a diversified portfolio of crypto assets spanning exchanges, decentralized finance (DeFi) and community tokens.

“I probably now hold 50% in Bitcoin, 30% in Ethereum, and 20% in alternative tokens to try to keep the balance, because I really don’t know what in this space will benefit and what won’t”.

Bitcoin was trading 2.0% lower at $55,424, while Ethereum fell 1.6% to $2,297.

Pal said he also has a small amount of the meme cryptocurrency Dogecoin to “get a kick out of it.”

“This is a joke that is becoming a popular network in its own right. How long will it last? Forever? Who the hell knows. But I bought it because there are a huge number of people behind it, ” Pal added.

An 8,000% price increase this year has led Dogecoin, launched as a satirical critique of the 2013 cryptocurrency frenzy, to overtake more widely used cryptocurrencies such as Litecoin, and briefly Tether, and become the sixth-largest coin. According to CoinMarket Rate, it was trading at $0.3272.

Uncertainty rocks markets

Pal said that increased regulation and uncertainty could reduce the value of Bitcoin.

“I think there could be a negative effect when we see more risk returning to the markets,” Pal said.

However, he said the markets were more concerned about the uncertainty than the regulation itself, which he expects will benefit Bitcoin in the long run.

“I don’t think anyone will stop this space,” he said, adding that governments will eventually come to a balance sheet to ensure the taxation of crypto assets.

Pel expected the European Central Bank and the US Federal Reserve to launch their digital currencies in the next three to five years, and India would also move quickly in this direction.

According to him, there are already quite advanced” digital payment mechanisms ” in India: “I think India will sort this out in time”.

In March, a senior government official told Reuters that India would propose a law banning cryptocurrencies, imposing fines on anyone who trades in such assets or even owns them in the country.