Ripple Could Face a Penalty Before Being Allowed to Continue
Notwithstanding a lawsuit brought by the Securities and Exchange Commission, Raoul Pal claims that the worldwide payments asset XRP has a fantastic risk-reward ratio (SEC). The CEO of Real Vision and Global Macro Investor explains in a recent interview with Savvy Finance why he continues to be optimistic about cryptocurrencies.
“The risk-reward ratio for XRP is excellent. We’ve watched every single case, and they’ve all been successful. And anyway, the incident happened a long time ago, and everyone has now cleaned up their act. So I believe there will be a hit on the hand that might seem like a security, with no admission of wrongdoing on either side, a penalty payment, and then XRP will be allowed to continue. Bitmex, that’s occurring, we’re likely to see all of them.”
Another reason identified by the retired Goldman Sachs executive is the rise in the price of bitcoin. “One of the most intriguing things regarding XRP is the sheer number of applications it has. Presently, I’m aware that a significant portion of the Bitcoin community disapproves– it’s not decentralized sufficiently, and that’s OK with me. Is it in widespread use?
In fact, it’s a much more than the average person realizes, and the structure is so unique that you can’t purchase it on any exchange or via the Bitwise ETF. The Bitwise ETF currently represents a billion bits of the Bitwise index, according to the data. It’s estimated that the top 10 index is worth $1 billion, so once XRP is free, everyone will be able to purchase a few hundred million dollars’ worth of it. Once the exchanges get it back, you’re in for a good run.”
Although Ripple’s legal fight with regulators may result in a loss, Pal believes it’s still worthwhile to place bets on XRP. “What if the worst happens? I’ll accept a 50-1 risk-reward ratio for the forthcoming three to six months if the worst comes to the worse, and the best comes to the best,” he said.