Real Vision CEO Raoul Pal says that Ethereum’s (ETH) transition to proof-of-stake will bring something “magical” to the top smart contract platform.
In a new interview on Real Vision Crypto, the macro guru says that investors will flock to Ethereum after it transitions because yield will be introduced to the protocol.
Pal notes this is particularly exciting for the crypto industry as ETH is slated to also see a supply shock due to mining being obsolete in a proof-of-stake consensus mechanism.
“Post merge, a few things happen. There are no miners to sell every day, that’s about six billion that just disappears from selling each month. Okay, so that’s a difference.
Then we’ve got the reduction in supply but that’s really driven by the increase in network activity. We need to see the network go up a lot for that to really kick in. It becomes deflationary but it’s less inflationary. There’s less Ether around but then we’ve got this magic.
The magic is you’ve introduced yield into the ecosystem in a secure way so therefore this is going to attract new people into the ecosystem who want to get ETH for yield.”
According to Pal, the combination of rising demand and dwindling supply means that the next year should be a good one for the digital assets industry.
“You’ve got a demand shock, also the lack of ESG [environmental, social, and governance] restrictions that people have with Bitcoin, falsely so, but I understand that that’s the mandate that people have got.
So you’ve got people who are frustrated who want to invest but couldn’t because of ESG and Bitcoin, they’re waiting for [the ETH merge] to happen so ETH now has yield… you’ve got this technology asset that represents a big exciting future with a yield [and] a limited supply and a macro that’s changing.
To me, that suggests the next 12 months [will] probably be very good for digital assets.”
ETH is changing hands for $1,616 at time of writing, a 7.5% dip on the day.
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The post Ethereum Will Introduce Something Magical After the Merge, Says Macro Guru Raoul Pal – Here’s What He Means appeared first on The Daily Hodl.