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