Former Goldman Sachs fund manager and Bitcoin bull Raoul Pal is paying more attention to the altcoin market.
In a series of tweets, the Real Vision CEO says he finds it ludicrous when people consider all other cryptocurrencies as a scam simply because they are not Bitcoin (BTC).
“It is like taking a snapshot of early VC bets and writing everything off as a zero because it’s not Google. Apples and oranges. The actual money is in the numbers game – Pareto’s Law…
Tokens are just real-time trading VC bets. If you owned early seed investments with real-time mark to market you’d see the exact same. 80% go to zero, 19% add value and 1% make all the money. Real time marks freak people out.”
Pal says he understands why many investors stick to major crypto assets.
He is currently invested in BTC and Ethereum (ETH), and says he plans to diversify his crypto portfolio to include riskier bets.
“When you are far out on the risk curve, time horizon and diversification matter more than anything else. Closer toward the safety curve, where you have more security, offers lower returns generally but concentration helps increase those returns…
Over time I’ll go out further on the risk curve. I will have the same bet in emerging markets.”