Raoul Pal Ethereum – 100x Is Still Guaranteed In This Space – Nov 4, 2021
Is that correct im not saying how much im putting into it but ive got a hundred percent of my liquid net worth in crypto and about 70 percent of its in the theater? Probably more now probably 80, something percent is in ethereum. Would you regard yourself as an ethereum? No, its the biggest bet ive ever taken im, not an ethereum maximus. I just think its the best risk adjusted reward im, an investor. Yes, i love the space im, passionate about the space overall and the ethos and the culture and everything thats happening. But what im trying to do is maximize my returns and yes, could i make more money in solana, possibly but its riskier ethereum is so clear with the restricted supply theres a supply crunch everybodys staking their wreath everythings, being locked up on smart contracts. So to me and im seeing institutions coming into ethereum because they feel more comfortable there than they do with bitcoin because of the issues we talked about, the the culture within the community. So im like this is the best bet to me so thats thats. So im, not an east maximus in any way. In fact, i own tons of old coins, stuff, like solana, avalanche and terra, and i think, everybodys doing great work and the world should be about all of us doing great work and working together, because the whole space is going to go up 100x and if bitcoin Ends up being not 45 of it, but ends up being twenty percent of it, but the whole space has gone 100 x.
It works for everybody, you you mentioned 100x, which is incredible it. Where do you see that in the next 10 years, the next 15 years? So this is the fastest adoption of any technology in all recorded human history, so its growing at 113 a year which is twice the speed the internet was when it had 150 million users. You extrapolate that out you get to a billion people by 2024.. If you look at it in terms of market cap, its about 22 trillion today, bit over that most other assets are around 200 trillion, so equities bonds real estate. So if this is the asset class that we think it is and its growing at this rate, then 200 trillion is a reasonable estimate by the end of the decade, so thats an entire asset class market cap going up a hundred fold, weve seen that in a Stock before weve seen that, if you think never an entire asset class and so its the biggest opportunity ive ever ever seen, i think the best way for people who arent super connected in the space, because a bunch of people who know everybody and its much easier For them, but theres a lot of incubator firms, people like outlier in the uk um who incubate projects and will help you. So they will tell you whether youve got a good or that idea or not theyre kind of on boarding, a hundred um firms. At a time and theres several of these so so go to one of the incubator.
Projects seek their advice and they will help you through it all because theres a lot to learn and its really difficult. And if youre not super connected. It feels daunting. But there are people who are there to help who have set up to do it. Yeah – and i also just want to go back actually a second, because you mentioned that institutions are looking towards ethereum more than bitcoin, which um not which were not were not talking about enough. And you mentioned its because of the the toxicity. But it has to be something else: surely im sure people arent, you know big players, arent afraid of a bit of toxicity. Well, they dont like it because it reflects on them um. So they dont like to be overly involved in the space in that respect. But the reality is its very easy for them to grasp the concept of new technology. So you know, as opposed to having to be an investor and talk about. You know the the um, the devaluation of money and fiat money, and all of this stuff, which is kind of a complicated narrative for a financial institution to have eth, is easy. Its like this is the internet of value. We need to earn a stake in it. Um so thats, why and theyre all building applications on ethan theyre all looking at this and is more of a gateway drug to the kind of things that theyre interested in, which is you know, smart contracts, um and things like nfts.
What that can do for their business, you know, could you put insurance contracts on nfts? All of this is intellectually very interesting for the existing financial system, existing investors and in terms of third world markets. How do you see um this entire industry playing out? I know theres a lot of adoption happening, um, of course, in latin america and africa. Do you see them as pioneers with this technology yeah? They will be because they can. They can jump ahead and were seeing this. We saw it in kenya when it started with m pesa were seeing it in in india, where they kind of leaped ahead on a whole bunch of stuff. I think this is great and if lets go back to the nfts now, somebody in sudan can mint an nft and earl eath right. They couldnt do that in the world before, because there was no ability for them to work in international trade. Without all these restrictions and bank controls and all this other stuff, so its actually quite a big leveler and the metaverse is a leveler, because education is going to go into the metaphors as well. And that means that you can educate people in different countries who wouldnt get access to those lecturers or or those other fellow students who, alongside each other, its its amazing yeah its insane. If you think education is going to go into the matter, but so i wonder how much of our time do you think were actually going to spend inside there sort of increasing that yeah? How much time do you spend on zoom? Oh, my god dont ask me that, because that makes me think im going to spend so much time in the metaverse.
Well, you are because its all going to be the same thing, so your zoom right now exists as a separate app, but in the metaverse. If youre in 3d, most of us wont be because nobody wants to walk around with goggles all the time, but itll be part of an experience. Like a 3d experience on your screen, where you can have your zoom thing up, you can have other applications and it all works in a better way. So its just going to be a natural way for you to be youre, not always going to be living in the avatar world, where youre, representing yourself digitally you can represent the space that you operate within your computer screens. All of the things that you use again, there is no kind of final state. Everybody thinks oh, were all going to be walking around with vr headsets, and it doesnt have to be that its its every digital experience and how it all seamlessly comes together, because right now, for example, if i wanted to send you a bitcoin via this zoom, we Cant, no, but in the future, itll be super easy because theyll all be integrated thats. What the metaverse is so just. Finally, then, we cant have a conversation without talking about how crazy this week has been um with meme coins, so give us your take on meme coins. Should we just be staying away from them, you know, should we be going head first into sheep? What do you think, i think stuff like shiva its a bit too late? Now the people who were lucky were the people who kind of saw it, but these are like nfts theyre, just culture, their culture and its around a joke and its its its a very different thing, its not about oh, this is the new bitcoin its nothing to Do with that its kind of tongue in cheek that i want to own this dog coin because its hilarious and it has no use and if enough people think that it goes up in value and nobodys thinking, theyre the worlds smartest investor theyre, just enjoying the kind Of madness of the situation, its the same with nfts, so i dont have a problem with it.
I own some dogecoin for the same reason, because i think its a community and then you see theres a bunch of people who own it a lot of people own. It and then suddenly you see mark cuban accepting it for payments and you see elon musk. We use it for something and then youre like oh wow, theyre, actually building a network. So what youve done is started a community first and build a network out. Second, okay, why not thats, basically what um the opposite of what ashton, kutchner and gary v are doing theyre, building out the firstly, the the nfts and then building a community around that, so its just different ways of approaching it? This is a new world.