Raoul Pal: XRP has a great risk / reward ratio with 10x the upside potential
Raoul Pal argues that the global payment method XRP has a high risk-to-risk ratio despite the lawsuit filed by the US Securities and Exchange Commission.
In one interview New to Savvy Finance, Real Vision CEO and global macro investor shares why he remains bullish on the sixth largest crypto asset.
“XRP has an excellent risk / reward ratio. The lawsuit? We have seen many lawsuits and any of them are fine. In any case, things got better after the event. You look at Bitmex and see. So I think there will be a little reference to whether or not XRP is a security but neither party is to blame, then a fine and then XRP will explode free.
The former CEO of Goldman Sachs also identified factors that will affect the price of the coin.
“The interesting thing about XRP is that there are quite a few use cases. Well, I know a lot of people hate Bitcoin – it’s not decentralized enough, but I don’t care. Do people use it? Well, more than most people are probably aware, and the great thing about this setup is that not every exchange can buy XRP and it’s not included in the Bitwise ETF.
Since the Bitwise top 10 index is worth a billion dollars, they had to buy several hundred million dollars in it by the time XRP was free, so that could be the driving force behind the explosive price. “
Pal said that it is still worth betting on XRP, although Ripple could lose its legal battle with regulators.
“The worst case, right? The worst case is a 50% drop, the best case is a 10x boom from here, so I’ll have a 50: 1 risk / reward ratio for the next three to six months. “
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According to Dailyhodl