Raoul Pal, co-founder and CEO of Real Vision Group, has revealed in an interview shared on his company's YouTube channel why he prefers the cryptocurrency ethereum (ETH) over bitcoin.
This former executive of the world's largest investment and securities banking, Goldman Sachs, explained that he is a supporter of Ethereum because the cash generated by the ecosystem of this digital currency is around 100 times greater than the rest of the entire sector combined. . He also pointed out that a demand shock could be coming to this cryptocurrency due to the various use cases of the leading smart contract platform.
"[Ethereum] has a restricted supply due to the burning of ETH from gas fees. Everybody is betting their tokens on ETH 2.0, so exchange charges have been removed. Then there is about $ 100 billion locked up in DeFi [decentralized finance], NFT [non-fungible tokens] and all that. That really leaves an ethereum free float of around 11%, "he detailed.
The specialist thus maintains that only 11% of the available ethereum can be purchased on the market. "We have that demand crisis before our eyes. Bitcoin has none of that. Yes, there is a supply shock, yes, there is a bit of a demand shock, but it just doesn't have the network intensity that ethereum has." added.
In addition, Pal revealed that he has a massive allocation of this cryptocurrency in his investment portfolio after previously noting on his Twitter account that he was "more than irresponsibly long on ETH at the moment."
"I'm at least probably now, I don't know anymore, because I bought some options too, like I said in my tweet last night. I'm probably 85% ethereum," he stated during the interview.
The price of Ethereum, the second largest cryptocurrency by market capitalization, has risen by almost 3% in the last 24 hours and surpassed $ 4,480, reaching a new all-time high. However, after the rise on Tuesday morning, its price has corrected and is currently around $ 4,440. The new record came after the digital currency posted 7 consecutive days of negative offer issuance for the first time.
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