Former Goldman Sachs Hedge-fund Boss: ‘Volatility Is Your Friend’

Former Goldman Sachs hedge-fund manager Raoul Pal believes bitcoins volatility should be considered a good thing for the market.

CEO of Real Vision TV and ex Goldman Sachs hedge fund manager Raoul Pal has spoken out about bitcoin’s volatility. With the entrepreneur calling it a feature that drives the risk-reward. 

Speaking at a virtual event this week, Pal spoke about the price movements of the world’s biggest cryptocurrency. Bitcoin is not prone to stable movements like other assets such as gold and silver. Instead bitcoin can see moves of up to five percent per day as normal. 

Volatility not a bad thing 

Pal believes investors should change their mindset and look at the volatility as a positive feature for the cryptocurrency. When speaking of the risk-reward feature, Pal stated “without that volatility, you can’t have compounded annual returns of 230%. Volatility is your friend in this occasion”.

Bitcoin has seen a rise of over 113% in 2021 alone. Making it one of the strongest gainers in the finance markets this year. The current strength of bitcoin indicates there is still more upside expected this year. Pal reiterated that while volatile, bitcoin still enjoys predominant upside even with huge swings in the market. 

Bitcoin adoption increasing

The current growth of bitcoin has seen financial institutions take notice of the gains that are possible in the market. Pal explains that “Everybody is getting involved, is involved, or is in the due diligence process of doing it,”. 

Pal concluded by talking about bitcoin as the best performing asset class in all recorded history. As well as being the best performing asset over any period of time he mentioned. 

He concluded by talking about regulation within the cryptocurrency market. Pal believes that regulation needs to be minimal, and that it won’t hinder but rather attract more capital into the industry. 

In a recent tweet, the ex hedge fund manager called the recent three month breakout “a big deal”. Pal expects that bitcoin could see another strong move to a new all-time high.