dailyhodl.com
Real Vision chief executive Raoul Pal still prefers Ethereum (ETH) over Bitcoin (BTC) even after a difficult period for the leading smart contract platform.
The former Goldman Sachs executive says in a new interview with Money Talks that ETH’s deflationary token burns present a “massive supply shock” to the crypto asset.
He also predicts a massive demand shock for Ethereum.
“A lot of institutions wrongly didn’t like Bitcoin because of ESG [environmental, social and governance] concerns. Proof of stake gets rid of that. Additionally, [ETH] now has a yield, so that’s something that institutions love…
So now you need [to] make one asset allocation decision, which is, ‘I believe in this Web 3.0 technology world.’
So where do you allocate? Bitcoin or ETH? It’s going to be ETH. Why? Because you’re going to get something between a 6-10% yield. So that’s extraordinary.”
Pal says investors should back the “network that’s growing the fastest and has the most number of applications.”
“That’s the safest, easiest allocation. That happens to be ETH. Now, other earlier-stage tokens — whether it’s Solana or AVAX or whatever — are… earlier on the adoption curve, so you get that accelerated phase, so they’ll probably outperform.
But if you’re just thinking the safe, easy bet, looking at the internet, the money of the internet is ETH currently. Nothing is exchanged in Bitcoin. Literally nothing.”
ETH is trading at $1,614 at time of writing. The second-ranked crypto asset by market cap is down more than 2% in the past 24 hours.