What Makes Bitcoin and Ethereum Different From Other Crypto?
Real Vision CEO reveals to his 574K Twitter followers that he’s eyeing at both Bitcoin and Ethereum, as he believes these two crypto assets will continue to become more valuable over time.
“How to allocate to crypto: Does the project have provable network effects? Or might it have future network effects? The former suggests higher allocation of risk budget, the latter, less. BTC and especially ETH have it all. Others – yet uncertain. ETH is growing exponentially.”
Raoul Pal mentioned earlier that the crypto space is almost purely driven by network effects, causing the industry to explode at an extraordinary rate. Network effect is a phenomenon where an asset or a service becomes more valuable as more people use it.
“It’s astonishing, the network effect. And we’re bringing in the institutions, and they’re spreading into Ethereum, and everyone else is building products. It’s coming at us at lightning speed, and I don’t think the space can catch up with the narrative change that is happening so fast.”
The strategist also points out that the metrics he uses to quantify the network effect of a crypto asset.
“Active wallets plus number of applications built on it with their adoption too. ETH is far ahead – BNB and Solana are also showing scale potential.”
Pal remains bullish on the crypto markets overall and believes that the nascent industry will trigger one of the biggest transfers of wealth in history.
Source: Raoul Pal: What Makes Bitcoin and Ethereum Different From Other Crypto – Fintechs.fi
The REAL BTC threat is that it BYPASSES THE banking system ! It is not that the banks will collapse and people will withdraw their money from the banks - and take a red eye to BTC ! That also,is not likely in the short term.
The threat is that trade and commerce will BYPASS THE BANKING SYSTEM !
If A sells to B in POS store or online or by a wire transfer - the money goes to his bank - irrespective of FX chosen.Cash can be hoarded,of course, but up to a limit
Once the money hits the banks - then the trail is set ! EVEN IF THE PAYER IS NOT TRACEABLE - the recipient is screwed .Besides FATF - he comes in the Direct and Indirect tax net ! It is this tax net which feeds the corrupt government and politicians.
So in a trade through BTC or other CrC (Crypto Coin),the Govtt loses the entire revenue on that supply chain and value chain - FOREVER - and that will catalyse more and more of such trades.In fact it will start a BTC supply chain - with its tech platforms - wherein manufacturing upto a limit - will NOT PAY ANY TAXES TO the government.
The advantage to the buyer of the goods is that ,he get the items free of VAT or taxes - so it is 10-20 % cheaper,and he has anonymity of payment (if not of purchase)
AND THEN,THIS WILL BANKRUPT THE STATE AND THE BANKS (AS ALL THIS LIQUIDITY WILL EXIT THE BANKS AND WILL ALSO DESTROY BANK SOLVENCY AND THE MONETARY POLICY OF THE FED -AS INTEREST RATES AND CREDIT POLICY,WILL NO LONGER BE A LEVER FOR ANY ECONOMIC DECISIONS AND OUTCOMES !
That is the EXISTENTIAL THREAT TO THE WORLD AND ESPECIALLY TO THE "USA".
Take the case for India - the Bad assets are USD 400 Billion USD and COVID has aided the banks in hiding more !
It is CERTAIN THAT THE GOI WILL DEMONETISE BANK DEPOSITS ACROSS THE BOARD TO OFFSET THE LOAN LOSSES !
Y WILL PEOPLE PUT MONEY IN BANKS ? The same is the story in most parts of the world.
BTC supply comes from LOW COST POWER NATIONS
BTC demand comes from INEVITABLE DEMAND WHICH IS EXPECTED from BUSTED NATIONS LIKE INDIA - AND SPECUALTORS IN THE US/EU PUNTING ON IT
BTC THREAT COMES FROM THE USA and EU - the existential threat ! BTC is not a threat to PRC !
AND THAT IS WHAT MAKES IT A PERFECT INVESTMENT BET ! dindooohindoo
COULD IT BE THAT THE US AND EU ARE USING BTC TO TRAP INVESTORS,INFLATE THE BALLOON AND THEN BLOW IT UP ? THAT WILL WIPE OUT THE SPECULATIVE LIQUIDITY IN THE ECONOMIES - AND THE WEST CAN DO A FALSE FLAG - LINK THE MONEY TO CRYPTOS - AND THEN USE THAT TO BLOW IT UP !