Former Goldman Sachs bitcoin enthusiast on cryptocurrencies

A former Goldman Sachs executive described the sharp volatility in cryptocurrency prices as normal and expected, stressing that price fluctuations should not discourage investors from engaging in them.


Speaking to Reuters, Raoul Pal said “people need to learn to adapt to an asset that is so volatile“, stating that their cryptocurrency investments are 50% shared in Bitcoin, 30% in Ethereum and 20% in other cryptocurrencies.


“I try to balance between different options because I do not know what is going to win and what is not,” said Pal.


Asked about Dogecoin, Pal said he also has a small exposure to the cryptocurrency, saying the doge deal was “fun” and that people seemed to support it. He also stated that he bought some because the “crowd is behind that”.


He also estimated that the uncertainty and the measures of the governments to control the cryptocurrencies, will push bitcoin even higher than the current data.


Pal noted that he expects the European Central Bank and the US Federal Reserve to introduce their own digital currencies in the next three to five years.


“Tether had passed its first regulatory hurdle, and its next obstacle will be the introduction of digital currencies by various central banks”, he added.