The inter-operable world is where blockchain technology is ultimately headed and everything will be able to move across multiple chains in the future, according to former hedge fund manager Raoul Pal. His comments were part of a recent interview with InvestAnswers where he discussed Bitcoin, macro investing, and the Metaverse.
During the discussion, Pal gave his opinion on the future of blockchain mechanics and likened it to the way computers are often able to work together despite having different hardware or software systems.
“So you and I are talking and I don’t know what computer you’re on, what internet service provider you’re on, what software you’re running,” said Pal. “I just click the button and there you are. That is the world we’re going into here with the exchange of value.”
Pal made his comments when asked about the possibility of Solana and Ethereum working together as interoperable execution and settlement layers. For institutions and everyday transactions, the investor says there is little reason to try and bet on which one protocol will win over all others.
“You’ll never think to ask me what chain did that go across. You don’t care,” Pal said when speaking about sending money between friends. “There are certain things that we absolutely don’t care where they go.”
“Certain types of operations just can go to the cheapest thing, or the fastest, depending what you’re trying to solve. Other things we need ultimate security.” Raoul Pal reiterated his earlier comments, noting people have different needs that are going to be solved by individual protocols rather than trying to have one system to rule them all.
“We all have different needs which is why we use different computers, different software, we have different phones, we do different things. We use different service providers and I think it’s just going to be the same. So interoperability is great – that’s the world we know from the internet.”
The comments by Pal show his strong conviction for an inter-operable crypto world where everything will be able to move across chains. He acknowledges that Bitcoin will continue to lose market cap dominance as time goes on while new protocols surface that bring new innovation and solve more unique problems.
“Every person in the space was in Bitcoin to begin with by definition, yeah, and then they start migrating to different things when they’re looking for different opportunities.”
Raoul Pal is a former fund manager who now runs Real Vision, a financial media company. He co-managed hedge funds in addition to advising high net worth families, macro investors, and other elite institutions.