Raoul Pal, the founder, and CEO of Real Vision is disclosing to his followers how much of his portfolio he is allocating to Ethereum and why he prefers it over Bitcoin (BTC).
The former Goldman Sachs executive tells Real Vision’s 569,000 YouTube viewers that he is positive on ETH since the Ethereum ecosystem generates around 100 times the amount of wealth created by the rest of the sector combined.
He also says that Ethereum may face a demand shock as a result of the platform’s many application cases. As the inventor of Real Vision explains,
“Ethereum has a limited quantity due to the ETH burned for gas costs. Because everyone is staking their tokens for ETH 2.0, you’ve effectively removed them off the exchange. Then there’s the approximately $100 billion in Defi (decentralized finance), NFTs (non-fungible tokens), and so on. This results in an approximately 11% free float of Ethereum.
11 percent is the total amount of Ethereum that is available for purchase on the market, and we are seeing a demand shock. Bitcoin is not like that. Yes, there is a supply shock, and yes, there is a little demand shock, but it just lacks Ethereum’s network intensity.”
Pal is now revealing his big Ethereum holdings after declaring last week on Twitter that he is “more than recklessly long ETH right now.”
“I’m at least, I’m probably now, I don’t even know because, as I said in my tweet last night, I purchased some options.” I’m probably around 85% Ethereum.”
The second-largest cryptocurrency by market capitalization is now selling at $4,316.47, up more than 27% in the last month, according to CoinGecko.
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