Global Macro Investor CEO Raoul Pal has listed a number of reasons that Ethereum may well exceed Bitcoin in terms of market capitalization in the future.At the moment Ethereum’s market cap is just 18% of Bitcoin’s with $62 billion compared to $334 billion.
In a flurry of tweets today, the investment strategist and economic historian compared the sizes of crypto currencies to traditional financial markets such as bonds and derivatives.The stand-out comments were all very bullish for Ethereum which may have an entire financial economy running on it in the future.
“My hunch is BTC is a perfect collateral layer but ETH might be bigger in market cap terms in 10 years for the reasons above.” A few things to make you think…
If bitcoin is the digital pristine collateral, the size of global gov bond market is $123trn.
Pretty amazing opportunity for bitcoin.
— Raoul Pal (@RaoulGMI) December 11, 2020 Can Ethereum Really Surpass Bitcoin?
Bitcoin, which is currently correcting, has traditionally been considered as a store of value rather than digital money or a financial application layer.Sending and receiving Bitcoin is relatively slow and markets are still way too volatile for it to be considered as ‘money’.
Ethereum prices are also volatile and it too can suffer greatly when the network is under heavy load.The difference is that many other assets from stablecoins to real estate to non-fungible gaming tokens can be tokenized on Ethereum.
It is a foundation layer for an entirely new financial landscape.
Pal kicked off the thread stating that if Bitcoin is the digital pristine collateral, the size of global government bond market is $123 trillion, and it could be a “pretty amazing opportunity for Bitcoin”.
He then compared crypto markets to current settlements, derivatives, and forex layers in traditional finance which are in the quadrillions of dollars.
“Almost no one in crypto understands the size of financial markets.It is never ever going to be winner takes all.It is near impossible as each blockchain has its limitations and trade offs and that suits the complexity of the financial world.”
He added that money and collateral is just the base layer, and everything builds on top.
The store of value is collateral, the trust layer and exchange of value is bigger, and this is Ethereum he stated.The Case of DeFi
Decentralized finance has been the primary case in 2020 as the majority of it is built on Ethereum despite the emergence of a number of faster rival blockchains such as Polkadot, Solana, and Binance Smart Chain.
None of them have managed to ‘kill’ Ethereum and they are unlikely to in the future unless developers in the current DeFi ecosystem want to re-write all of their code and contracts for another platform with fewer users.
As DeFi grows, so will its reliance on Ethereum, which is also evolving itself and is already scalable through Layer 2.Native scaling is around a year or so away, and by then Ethereum would have cemented itself even further as the base layer of this new financial world.Share this: KickEX Adds Buying Crypto For Fiat With Bank Cards [PRESS RELEASE – Please Read Disclaimer] The long-awaited ability to exchange fiat for crypto using bank cards is now available on the KickEX exchange.Many Kick Ecosystem users used to have difficulties buying cryptocurrency via third-party services, so the KickEX team made it possible to buy digital assets for fiat with just a few clicks.… Yearn Finance (YFI) Surged to $35,000 Following Coinbase Pro Listing Announcement YFI took the crypto world by storm last month when it did the unthinkable and surged higher than Bitcoin’s price at the time.Since its launch in mid-August, the DeFi token pumped monumentally to top out at around $39,000.
It is a prime example of demand through scarcity as the big draw for this asset… AI and Blockchain Elite Gathering in Malta The Malta AI & Blockchain Summit (AIBC) took the blockchain sphere with storm during the monumental success of the November summit in 2018, which brought W.
Scott Stornetta, John McAfee, the Winklevoss Twins and Sophia the Robot to Malta’s shores along with 8500 delegates.The next AIBC summit is taking place on May 23-24 and… Harmony IEO Will Be The First To Get Listed On Binance and Binance DEX On May 29th, Harmony submitted a proposal to Binance’s Decentralized Exchange (DEX) to list its ONE token as a BEP2 token.The proposal has been formally approved by the Binance Chain validator network today, May 30th.As such, ONE will become the first token to trade on both Binance and Binance Chain.Harmony on Binance… Was This The Trigger For Bitcoin’s Dump? 3600 BTC Huge Sell-Off Order On BitStamp Cryptocurrencies today are down by as much as 15% in a crash that could be fueled by a ‘whale’ selling over 3,600 BTC on Bitstamp.
All the major cryptocurrencies are down at the moment, with Stellar (XLM) being the biggest loser with an almost 15% decrease (24 hours).Coin prices started to fall around 2:49… Overstock’s tZERO WIll Support Tezos Blockchain For Its Digital Securities Protocol The popular blockchain company for capital markets, tZERO, announced a new collaboration with the Tezos Foundation.The Overstock subsidiary aims to support more blockchain platforms outside of Ethereum.Therefore, the firm’s digital securities protocol will also utilize the Tezos blockchain.
tZERO On Tezos Blockchain tZERO, the blockchain project of the giant American internet retailer –… Analysis: Tether (USDT) Transfers to Exchanges Reached New ATH As Bitcoin Surged Above $10,000 Recent data revealed that the number of Tether (USDT) transfers to cryptocurrency exchanges had reached an all-time high.Interestingly, this preceded the latest price increases within the cryptocurrency market.USDT Goes To Exchanges According to the data provided from the monitoring resource company, GlassNode, the number of Tether transfers to exchanges has been surging in… Someone Just Paid Record-Breaking Transaction Fee Of $2.5 Million To Send $130 Worth of ETH A recent transaction on Ethereum’s network saw someone pay 10,668 ETH in fees while the actual value of the transaction was 0.55 ETH.This isn’t the first instance of something like this happen as insane fees have been paid on several occasions in the past.
$2.5 Million Worth of ETH Fees for a Single Transaction… First signs of segregating regulatory? Coinbase launches a new listing process Coinbase announced that they would be launching a new listing policy to aimed at expanding their menu of traded coins on the exchange.Currently, Coinbase features just five coins; Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin (other coins being explored now include Cardano, Basic Attention Token, Stellar Lumens, Zcash, and 0x).The new listing… .
