Billionaire investor Raoul Pal, CEO of Global Macro Investor, through a series of tweets, listed several reasons why Ethereum may overtake Bitcoin in market value. Pal emphasized the colossal amount of money allocated in traditional global markets that can flow into crypto.
According to Coingolive, the Ethereum network's market cap is $ 62.18 billion, which represents about 18.5% of Bitcoin's market value, equivalent to $ 334.66 billion. Paul's argument is based on the gigantic size of money in traditional markets that can be allocated to ETH, BTC and other crypto assets:
“Almost anyone in cryptocurrencies understands the size of the financial markets.
The winner never takes it all. It is almost impossible, as each blockchain has its limitations and compensations and this adapts to the complexity of the financial world. ”
Pal cites the size of some markets and which cryptocurrencies could benefit from this with this capital flow:
Derivatives: $ 1.4 Quadrillion – “It looks more like ETH than BTC as the dominant agent.”
Actions: $ 70 trillion – "ETH tokens and other protocols are more likely"
Government debt securities: $ 123 trillion – “Incredible opportunity for bitcoin.”
Foreign exchange market annual transactions: US $ 1.7 quadrillion – “BTC, ETH, XRP, etc.”
See too: "Perhaps all stocks can become blockchain tokens," says SEC director
Pal goes on to cite quadrillion values that could greatly affect cryptocurrencies. The investor does not appear to be a maximalist who believes that Bitcoin will be able to meet all market demands, with room for other assets.
There will be many huge winners, many failures, many scams, many false dawns, but in the end, trillions and trillions of value will accumulate in digital assets, tokens, protocols and cryptocurrencies that bring it all together.
"My guess is that BTC is a perfect layer, but ETH may be higher in terms of market capitalization in 10 years for the reasons above."
What will be the impact on the price of Bitcoin and Ethereum if global markets are adopted? I left it in the comments.
Read more: Bitcoin soars to R $ 165,000 in Argentina with tax creation.
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