You got faith in it; bet everything on it. This seems to be the philosophy of Raoul Pal, a former Goldman Sachs hedge-fund manager who announced over the weekend that he is going all-in in Bitcoin.
However, he did clarify that he can afford to take this road and cautioned others to do the same as him and “do your own research and size accordingly.”
By betting his 98% liquid net worth, Pal has beaten another vocal Bitcoin bull Anthony Pompliano who says his 90% investment is in BTC. But as Pal points out, he is
“older and in a position to take more risk. And it is risk, no guarantees.”
The prominent bitcoin bull is putting it where his mouth is as he prepares to sell all of his gold and invest it all in Bitcoin and Ethereum. Pal, the co-founder of Real Vision tweeted,
“I have a sell order in tomorrow to sell all my gold and to scale in to buy BTC and ETH (80/20). I don’t own anything else (except some bond calls and some $’s). 98% of my liquid net worth. See, you can’t categorize me except #irresponsiblylong.”
While only 20% of the latest investment is in Ethereum, Pal has a “hunch” that it would be Eth that would beat Bitcoin in price performance. Explaining the reason behind his 80/20 allocation, he said,
“I think ETH outperforms possibly by 5 to 1 but who knows. BTC is the easy bet.”
I would bet that Ethereum outperforms Bitcoin by many multiples in the coming years, but still view Bitcoin as the far better safe haven and investment.
I see no reason not to be exposed to both.
— The Wolf Of All Streets (@scottmelker) November 30, 2020
It would be no surprise if Eth actually outperforms Bitcoin because it did so in the last cycle too.
Compared to Bitcoin’s 1,300% gains in 2017, ETH rallied 9,162% the same year. Moreover, while BTC is just over 7% away from its all-time high of $20,000, ETH has yet to surge 63% to reach its all-time high of $1,570.
In terms of year-to-date performance as well, ETH has gained 341% to Bitcoin’s 156% while trading at $575 and $18,470, respectively.