Popular investor Raoul Pal explained why he changed his mind about Bitcoin (BTC) in favor of Ethereum (ETH).
In a recent interview with Real Vision, Pal said that he initially thought Bitcoin would continue to be the most widely held and best performing cryptocurrency. However, Pal said that the big players in the institutional investment industry eventually convinced him otherwise:
“When my views on Bitcoin have changed dramatically, I don’t think of it any less as an asset. But when I think about it from a network and community perspective, I’ve come to the conclusion that the community doesn’t attract new people. And the job of a network is to attract new participants. And if the network is actively rejecting people, I’ve come to the conclusion that it will underperform. This was surprising to me because at first I was very optimistic about Bitcoin. What happened next happened almost instantly and made me change my mind. And I started buying ETH.”
Former Goldman Sachs executive said that among institutions, Bitcoin is no longer the only crypto asset that is taken seriously.
“I’m talking to the biggest financial institutions in the world who are talking about how to invest literally every other day. And the narrative change really took me by surprise. Previously, the topic was always Bitcoin. Can we put Bitcoin on our balance sheet? How should we invest in Bitcoin? What is diversification? Now they think Ethereum is a logical technology. DeFi etc. We are dealing with Then everything developed very quickly, the thoughts of how to get involved in Web 3.0 started.”
Pal says that Ethereum’s power to create network effects combined with its technical capabilities make it “superior” in the crypto space, mimicking the early adoption of the internet.
“It’s like the internet. This is a far superior bet. And eventually I shifted my investments to Ethereum and then made other investments in the space to express macro views.”
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