The post Investors & Traders Choose Ethereum Over Bitcoin! Here’s What Raoul Pal Has To Say appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide
The long-envisioned flipping is starting to come up again as the rally powered by Ethereum goes on. In the event that the Ethereum merger goes smoothly and the sell-the-news event is over, why shouldn’t a newly powerful Ethereum surpass bitcoin in market cap?
Raoul Pal, the CEO of Real Vision, still believes that Ethereum is superior to Bitcoin, despite the latter’s recent struggles as the dominant smart contract platform. In a recent interview with Money Talks, the former Goldman Sachs executive claims that the deflationary token burning on ETH caused a “huge supply shock” to the digital asset.
“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.”
According to him, the easiest and safest allocation is that one, and that is indeed ETH him. Solana, AVAX, and other early-stage tokens are earlier on the adoption curve, so you have that accelerated phase, therefore they’ll definitely outperform.
Will Ethereum Surpass Bitcoin?
To surpass bitcoin in value, Ethereum will need a lot of things to go its way. If everything goes according to plan, the Ethereum upgrade would significantly lower ether’s inflation rate, which would result in an even more drastic supply drop than the bitcoin halving.
Positive news in front of the much-awaited Merge has fueled the comeback. One of the first cryptocurrency exchanges in the United States, Coinbase, declared its intention to only allow domestic companies to stake large amounts of ETH. With $27.9 billion of ETH currently locked in the proof-of-stake Ethereum network, stakers can make passive revenue as they decentralize and fortify the network.