In an interview during the Reuters Global Markets Forum, Pal acknowledged that bitcoin is a volatile asset but called on investors to adapt to the digital currency’s nature since it can offer a risk-reward skew. However, Pal noted that the regulatory uncertainty might hamper bitcoins’ current rise. Countries like India have initiated steps to ban bitcoin, with analysts stating the move might be monumental to the asset rise in the mainstream world. Pal notes that it will be hard to stop the cryptocurrency space, but the regulatory uncertainty around bitcoin will eventually benefit the asset. He pointed out that one of the regulatory frameworks will see governments tax crypto assets. By the time of writing, bitcoin was trading at $56,189 barely a week after hitting a new all-time high price of almost $65,000 on April 14, 2021. The entry of institutional investors like Tesla (NASDAQ: TSLA), PayPal (NASDAQ: PYPL), and Visa (NYSE: V) potentially inspired the record price.
More countries might launch CBDCs
In a bullish projection for the digital assets sector, Pal expects the European Central Bank and the U.S. Federal Reserve to launch their digital currencies in the next three to five years. China is leading the way in establishing a digital yuan while other leading jurisdictions are conducting feasibility studies for CBDCs. Pal, a bitcoin bull, also shared the distribution of cryptocurrency investments stating he has ventured into crypto exchanges, decentralized finance (DeFi), and community tokens. He also commented on the rise of dogecoin in recent days. Although Pal revealed he has invested in the meme-inspired asset, he is unsure about its long-term longevity. By press time, dogecoin was trading at $0.31, representing 6,495% growth on a year-to-date basis.
