It’s not a secret that many prominent people from the world of finance have jumped the ship to join the Bitcoin journey. Some of them are the best fund managers of Wall Street, while some others are from the banking industry. Now one more prominent banker has come out in the support of Bitcoin, and he is an ex-Executive of Goldman Sachs. Raoul Pal, the former head of Goldman UK’s Equities and Equity Derivatives division, recently spoke at a podcast interview regarding his fascination of Bitcoin. And there were some truly amazing insights coming from him, which we’re going to explore here.One of the most bullish things that Pal said about Bitcoin was regarding its long-term usability. He said that he believes Bitcoin is here to stay, and those who’re all in it understand the kind of astonishing returns it can give in the long-term. Here’s what he said:“I know all these macro guys, they’re all in it. They get it. They get the optionality. They may be complete believers, part believers, partial believers. But even then, if it’s a 1% chance of being right and the upside is 100x from here, you’d do this all day.”Pal said that he believes the potential rewards of Bitcoin far outweigh its risks. He said that there’s a probability of Bitcoin reaching $8 trillion in market cap. Here’s how he put it:“So if it’s worth 80 trillion dollars, let’s say you have a 10% probability, that’s 8 trillion dollars. It’s currently worth 200 billion dollars. So even if there’s a 1% chance of it working […] what it’s telling you is that it’s ludicrously underpriced if any of these probabilities play out. These numbers are crazy attractive, and that’s why it’s sucking in so many of these macro guys, because they’re like, ‘Damn, nothing else has this payoff.”Interestingly, Pal himself is also invested in Bitcoin. He had discovered it early on when its price was only 17 cents, and had invested $200 at that time. Speaking about that investment he said that he was probably the first person to put together a valuation of Bitcoin. He said:“I was probably the first person to put together a valuation using the above-ground supply and below-ground supply of gold, and imputing that into Bitcoin, which was basically the Stock-Flow model at a very simplistic level. I first discovered Bitcoin […] because some of my clients had begun to mine it when it was at 17 cents. They were running a hedge fund, and they happened to have electricity included in their office space, and somebody talked to them. They were very, very early adopters […] So, I wrote an article. I got long, around $200.”So now bankers are also going long on Bitcoin. Who needs any more developments to prove that BTC is here for the long term? Probably the officials of finance ministry should read this.
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