It's Ethereum Time
Everyone's Doing the $ETH Rain Dance
Real Vision founder and former Goldman Sachs executive Raoul Pal (or Papa Raoul, as I like to call him) recently said that Ethereum ($ETH/Ether) is currently one of the greatest trade setups he has ever seen.
In the video above, Pal shared the following:
“I think it’s a better setup in Ethereum…than March 2020 was for bitcoin.”
To contextualize, one bitcoin cost about $3,000 in March of 2020.
He continued:
“Basically, there is 13% of all the free float of Ethereum available…The Ethereum that is in free float is falling every day. And now we’ve just got the 1559 token out of the way. Most people are going to start staking the $ETH that they hold. And there is no $ETH available. And demand has gone exponential. Exponential demand meets fixed supply equals exponential price rise. One of the best setups I’ve ever seen.”
Big words. I recommend that you read the article I’ve linked above about the Ethereum Improvement Proposal (EIP) 1559, more commonly referred to as “EIP-1559”. One key element of this upgrade that pertains to the price of Ethereum is that in each Ethereum transaction post-upgrade, a small amount of Ethereum is now burned. In other words, every time Ethereum is used in a transaction, there will be less of it. So, if you love bitcoin because it has a fixed supply, you should really love Ethereum since it currently has a diminishing supply. Vitalik Buterin, one of the creators of Ethereum, once referred to Ethereum as “ultrasound money”, riffing on the idea that many refer to bitcoin the most sound money the world has ever seen because of its fixed supply.
What is more, Ethereum is now one of the fastest, if not the fastest, growing digital network on the planet. It is currently growing even faster than bitcoin’s network.
And so now some of the big players are moving in. Goldman Sachs recently issued a statement in which they claimed that Ethereum’s smart contracts give it the power to potentially overtake bitcoin as the number one cryptocurrency. Analysts at JPMorgan recently sang the praises of staking Ethereum. (Remember when Goldman Sachs and JPMorgan were telling you not to buy Ethereum just a few months back? That was cute, right? Listening to these institutions tell you not to buy cryptocurrency is like listening to the U.S. government tell us that being in Afghanistan for 20 years was a good idea.) And Swiss bank Sygnum has become the first bank to offer Ethereum staking. Also, Microsoft is looking to use the Ethereum blockchain in efforts to help fight piracy. And aside from big banks and companies, crypto whales have been acquiring Ethereum en masse since its price has dropped from its all time highs. In short, the big dogs seem to have quite a hankering for Ethereum.
And let’s go to some of my favorite ladies in the space to see what they have to say about Ethereum. I recently dedicated an entire edition of the newsletter to the brilliant thoughts of Natasha Che, or Tascha, as she likes to be called, and she returned to Internet world yesterday with an incredible piece on Ethereum. In the piece, she made the case for Ethereum as the new global risk free asset. Sounds a little out there, I know. I suggest reading the piece, though. Brain so big. She also published the piece in the form of a Tweet thread (below).
And one cannot discuss $ETH without bringing Shardi B into the conversation, as she’s the queen of Ethereum.
I can go on and on about what seems to be shaping up with Ethereum, a foundational asset for Web 3.0, but 1. I think you get the picture and 2. You should do your own research. And after you do your own research, please feel free to leave some useful information or links to resources in the comments of this piece. For those who don’t know, you can access each edition of the newsletter via the following site - www.frankcorva.substack.com. There you can both like and comment on these pieces/editions of the newsletter. Your comments and thoughts are/would be much appreciated. Many brains working together is better than just mine blasting you with info.
Last thought for today… The Wall Street Journal just published a solid piece entitled “Bitcoin Fans Are Suddenly a Political Force”. The authors of the article touch on some of the points I made in the previous edition of the newsletter about what crypto’s growing role in politics is beginning to look like. Solid read.
As always, please keep in mind that I am not a financial advisor and that nothing in this edition (or any edition) of the newsletter is financial advice. Do your own research. And, again, when you do that research, please leave some of your findings in the comments!
Best,
Frank
Twitter: @frankcorva
https://ethburned.info - Eth Burned so far
https://ethburned.info