Real Vision CEO Raul Pal believes that the global economic crisis and the Ethereum merger will be catalysts for the growth of the cryptocurrency market for the coming year.
Former Goldman Sachs CEO Raoul Pal stated in an interview that after Ethereum’s transition to the Proof-of-Stake (PoS) algorithm, the amount of investment in ETH will increase due to the introduction of profitability into the protocol.
“After the merger, miners who sell ETH every day will disappear. As a result, $6 billion in Ether will simply disappear from monthly sales, as the volume of offers will decrease against the backdrop of promised network activity. If this happens, then Ethereum will become less prone to inflation. ETH will become smaller, but at the same time, the developers have introduced profitability into the protocol, and this will attract new investors to the ecosystem who want to make money on ether,” Pal explained.
A combination of growing demand, dwindling Ethereum supply, and Bitcoin’s environmental concerns signal that the next year should be a good one for Ethereum, according to the ex-Goldman Sachs chief.
“The Ethereum market is seeing an increase in demand and a lack of environmental, social and governance (ESG) restrictions that Bitcoin is currently facing. Therefore, frustrated investors who cannot invest in Bitcoin due to ESG will start investing in Ethereum after the merger guaranteeing income and limited supply amid an unstable macroeconomic situation,” Pal said.
A similar opinion is shared by Bloomberg Intelligence stock strategist Mike McGlone (MikeMcGlone). He recently announced that the transition of Ethereum to PoS will have a revolutionary impact not only on cryptocurrencies, but on the entire financial system. However, Tether and Bitfinex CTO Paolo Ardoino said that the transition to the PoS algorithm will not help Ethereum catch up with Bitcoin.
Earlier, the CEO of Real Vision said that the cryptocurrency markets have bottomed out, so traders should not be afraid of an even bigger fall, but should think about the future.
Source: Bits
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