Image: Coin Quora
Real Vision CEO and macro guru Raoul Pal says he believes the leading smart contract platform Ethereum (ETH) is likely to outperform Bitcoin (BTC) in the long term, according to The Daily Hodl.
In a new interview with Crypto Banter, Pal says that while the top crypto asset by market cap, Bitcoin, outperforms ETH in total trading volume and number of active wallets, Ethereum has found a way to outperform BTC over the last few years.
“If you think of Bitcoin, Bitcoin exchanges more value each week than Ethereum does. Ethereum has a lot of transactions. Transactions are a red herring. It's total value and number of active wallets and Bitcoin beats both.
However, if you look at Ethereum, the change in values, the rates of change in those two values in Ethereum is higher, which is why Ethereum’s been outperforming Bitcoin over the last couple of years, and I found it’s really useful. It shows what price is and price is pretty good.”
Pal said he remains more optimistic about Ethereum than Bitcoin. In his opinion, other altcoins should also eventually outperform digital gold.
“If you believe the future is in the technology, in blockchain technology, then this whole digital asset space should outperform the safe haven. That's just how things work. It always works that way and therefore, there's a higher beta.
If you're in an exponential uptrend because you're in a network adoption model for the entire space, not just for Bitcoin, then it should outperform over time. It's as simple as that.
It’s not a value statement about, ‘I don’t like Bitcoin because X and I prefer Ethereum for Y.’ It’s all about network adoption models. Once you understand that, you free your mind of all of the narratives that are in the different buckets.”
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.