Legendary investor predicts that Ethereum will be bigger than Bitcoin
The idea of Ethereum becoming bigger than Bitcoin is not entirely new. In late 2017, several fans of Ethereum dubbed it the “Bitcoin killer”. Surprisingly, Bitcoin has somehow managed to maintain its market dominance since its inception. As of press time, the legacy digital asset still maintained over 60% market dominance, while Ethereum enjoyed a market share of 11.95%, according to CoinMarketCap.
Global Macro Investor CEO, Raoul Pal, however, believes that the future could favor Ethereum. The renowned investor has made some rather bold statements, suggesting that the market cap of Ethereum could surpass that of Bitcoin within the next 10 years.
In a series of tweets on Friday, he listed a number of reasons why this shift may become possible. He outlined a number of traditional markets and then shared the opportunity to control the markets between Bitcoin and Ethereum. For example, the global government bond market is valued at around $123 trillion, and he believes there is an opportunity here for Bitcoin. Meanwhile, a global debt market of $260 trillion is likely to tilt in favor of Ethereum.
Total size of FX market transactions per annum is $1.7 QUADRILLION.
— Raoul Pal (@RaoulGMI) December 11, 2020
BTC, ETH, XRP, etc
In general, his comments were mostly bullish for Ethereum which he believes could have an entire financial economy running on its network.
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.
Whether Ethereum will surpass Bitcoin or not is still a subject for discussion. One thing is certain though, Ethereum is already finding some interesting use cases. A large percentage of blockchain protocols were built on top of Ethereum. The talk of 2020, DeFi, is one such example.
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