How Raoul Pal 10X-ed His Money with Crypto and Retired to the Beach

**SPEAKER_1** (0:00)
All right, there's this amazing book called Getting Everything You Can Out Of All You've Got. I read it a few years ago and it changed my life.
And the reason I loved it was because it basically talks about how to get and make more money using things that you already have.
Coincidentally, today's podcast is brought to you by Business Made Simple. It's a podcast by Donald Miller, who I'm gonna tell you about in a second, but he has this amazing episode that's all related to this book and the things that I learned in this book. It's called How To Make Money With What You Already Have. It's an incredible episode. It talks about all the stuff that I learned in this book. The host is Donald Miller. I didn't know who Donald Miller was up until recently, but over the last 12 months, this is totally by coincidence. It was all separate people. They said, you have to check out Donald Miller. He's amazing. So I'm happy that he's part of HubSpot's podcast network. You can check it out, Business Made Simple Podcast. It's where he coaches you on how to build your business like an airplane, where the cockpit is your leadership, the body is your overhead, the right engine is your marketing, the left engine is your sales.
You have to check it out. This guy's amazing. It's called Business Made Simple with Donald Miller.

**Raoul Pal** (1:02)
But my big discovery and why I really started loading up on Ethereum was another chart, which was a understanding that Metcalfe's law was the primary driver of all crypto markets. And in fact, almost all of the tech stocks that we've known today. And once you realize that these are basically networks, and once you realize that crypto are networks where you actually own the network. So Facebook is a great network stock, and it works perfectly on the log chart, and it's an exponential, does all the things as you imagine. You can value it in Metcalfe's law terms, but the fundamental difference is shareholders and network users are not aligned. The shareholders make the money, the network users get the utility.
Along comes crypto, you marry the network user with the owner. Okay, now you've got network effects upon network effects. This is like behavioral economics.
Manifest.

**Shaan Puri** (2:01)
Religion meets Metcalfe's law, right? It's like, now I'm tribal about the thing.

**Raoul Pal** (2:07)
It's religion meets capitalism. It's basically what it is, right? So that is incredibly powerful.

**Shaan Puri** (2:18)
So for those who don't know, basically, you were at Goldman, you started your own hedge fund, and then similarly, you retired, correct? You retired pretty young, you retired at 36 But I mean, now you have a company now, so you're not fully retired and kicked back.

**Raoul Pal** (2:33)
No, I've got four jobs I'm doing right now.

**Shaan Puri** (2:36)
Right, but you did have a break in between, correct? So I think it was 2004 when you sort of retired from the hedge fund, and it was 2014 or something when you launched Real Vision. So what was going on in between? Were you doing nothing or you were doing other projects I just don't know about?

**Raoul Pal** (2:49)
I was writing Global Macro Investor, but that is a monthly publication. So I don't know why all of you guys do weekly newsletters or daily newsletters, that's hard work. So I wrote monthly, it's big. It's like, well, it starts off at about 35 pages a month, and then due to inflation, it gets to about 130 pages a month now, but I write it in a weekend. So I was living in Spain, wrote one weekend a month, sure, I need to monitor markets and talk to people, but it was a part-time job.
So really what I'd done is kind of opted out of the rat race, moved to the Mediterranean coast of Spain. I was growing fruit and vegetables in my garden and almonds and olives and all of that stuff. Living the beach life in Spain on the side of a mountain in the middle of National Park, having a great life.
In the end, you start missing intellectual capital, the people around you. Because most of the people, most of the year round in a beach town in Spain, work in a bar or restaurant or they're in real estate, which is fine, but you feel very isolated when your world is global macro.

**Shaan Puri** (3:56)
Totally, so describe the moment because I think a lot of people listening to this. So just so you, I don't know how much you know about the podcast, but basically the podcast is usually me and Sam, he's not here because he's traveling. He's actually in Portugal right now.