Former Goldman Sachs executive Raoul Pal says the next wave of global liquidity is likely to throw the crypto space into turmoil.
In a new discussion on Real Vision, Pal says he was encouraged by the sheer number of people working on interesting projects in the crypto space at the recent Token2049 conference in Singapore.
“If you take a step back, that space attracts an astonishing number of smart people. I’ve never seen anything like it.
And everyone is in their deep rabbit hole trying to solve some of this. Everything was there, from gaming to taking away Apple’s monopolies and controlling who takes over payment systems, all these things within the gaming economy, the apps economy, and the cultural economy.
There are other people trying to solve the payment rails, there are other people trying to solve the infrastructure layer, there are other people trying to solve the financial system and how we can put finance on the blockchain…
So it’s so broad and the tentacles are everywhere among these extraordinary groups of smart people. It shocks me every time because online it’s reduced to Bitcoin and ETH, and when you actually see the scale of what’s being built, and the types of people and the types of smart capital…’
The macro investor says that while prices are generally quite far from their historical highs, the sector is still building new things, which bodes well for the future. He says the next influx of liquidity will likely push markets higher and into the next bull run.
“It’s an ant colony, and it’s anti-fragile because it’s an ant colony…
Once liquidity comes back into the room, you feed this ant colony and everything comes alive, so it’s very clear to me when I see it.
It’s like everyone’s mind is busy building and doing their thing, and the moment liquidity comes in, things explode again.”
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