Raoul Pal: I'm BUYING more ETHEREUM now because of this!! – Bitcoin News Today
Its like look. This is green um, so, yes, i think its a very significant story. So theres been a two: things happened in ethereum that are game. Changers one was the uh eip 1559, which was the change of methodology with what they did with the gas fees. So uh gas fees got rewarded to miners and what they did is reduced. The rewards and instead burnt eth with it, which is which is kind of like a share buyback, so that meant the supply of eth was being reduced because of the buybacks. So it went from about four percent supply to about a one and a half percent supply. So now theres not a lot of eve and we talked about the other supply and demand imbalance. Obviously, the price starts going up dramatically from that moment, which was over the summer and eth 2.0 is somewhat more powerful, because here theyre moving to proof of uh stake and not proof of work. Proof of work to remind everybody is what bitcoin is, which is to use complex calculations by massive computing power to solve these puzzles. That reward you in bitcoin thats. What mining is, but proof of stake is different. You get rewarded a yield by staking your your ethereum to secure the network, uses infinitely less energy, but is also very secure and very efficient, and it its going to create an a further issue with supply um. And what thats going to mean is, if becomes a deflationary asset, i each year theres likely to be less heath than there was the previous year year and if theres still network demand for eth.
Well, then the price rises dramatically. Now the question is: is: does that bring down the fees of using eth enough? Probably, but if not, okay people are going to use different chains because you know eth becomes more expensive to use. But you know this is a really really powerful thing and i think the eth cycle is going to be a big driver of everything, its already happening and right now, its all defined in eth. If is the money of the internet uh whether the bitcoin is like it or not, nobody uses bitcoin, i mean zero, everybody uses ethereum, so does it stay ethereum? Do we have different protocols? I think well have multiple currencies. I think different communities have different currencies and i think thats right, so everything becomes almost in sovereign states in its own right. You know, if you think about facebook, if facebook introduced dm yes, its pegged to the dollar, but its basically their token, so they now have three and a half billion people kind of an organizing set of principles and rules. Um kind of a mission of what facebook and their network does and its that a system of money. Well, that sure looks like a nation state to me and guess what facebooks the biggest nation state in the world if thats the case right people need to get our heads around, but we can also create small nation states once you start adding money, you know well Create a real vision, token at some point soon you know, were working on it now um and that will create our own little nation state, its fascinating.
So, yes, there is a multi currency world. Yes, ethereums, probably the base layer for a lot of this um, but who knows that could change um, but the point being, and the point youre getting at is – is all of this value transferable across these different experiences thats. What everybodys working to do to make it seamless that i dont care what network this is on? I want to you know i want to gift you my dng jacket and i can do that and youre. Not asking me. Oh, is this on ethereum? Is this bit whatever it just goes into your wallet? You know i just message you or whatever, and straight straight across it goes and same with money, so thats all coming, the interoperability load is being built out that we dont care what rails. It goes on. What blockchain its on were just not going to be asking that in 10 years time and what blockchain its on you know its like its irrelevant its the its the asset itself is all we care about. So markets are all about psychology and if everybody expects something to happen, it wont happen so everybodys kind of got in their heads that the cycle finishes in december because thats, what it did in 13 and thats what it did in 17.. So my guess is, we probably have a sell off and then it rips again, because that is the path of most pain and markets tend to have the path of most pain.
Why is it going up right now, because the institutions arent in and theres no etf, so retail arent in so the path of most pain? Is it going up while people arent in but the path of most pain would be a bunch of people sell out thinking? Theyre being clever and the market goes up, why will it go up institutional adoption is not going away. The retail etf is coming, itll come out in the next couple of months, so were going to broaden the access and were going to bring institutions. Institutions tend to make asset allocation decisions by quarters, and my guess is january to march quarter next year were going to see a huge inflow, because the etf will be out so pension funds and everybody else. So i think its going to push it out a lot further. I think the other big driver of this market is going to be 2.0 and the reason being is, everybody is staking their eath its creating this incredible supply and demand imbalance in eath, where theres only about 11 of the total uh supply available. Everything else is locked up for this staking where people are getting a yield to secure the network for ether, 2.0 or people are just sticking into wallets, so theres, no ether round and exploding demand from nfts d5 and other investment and theres going to be an etf. So thats a ridiculous setup, but ether 2.0 again think of investor psychology, youve staked your your coins, youre getting your yield and ether 2.
0 is going to come out somewhere between march and june lets say well. When it does, you dont need to stake as much because it will be unlocked. So what youre likely to do is is sell some of your eth to buy a house or do whatever you want to do, because youll have made plenty of money from it and that will create a market shift. So, even though ethe 2.0 is incredibly bullish because it turns eth into a deflationary asset, itll be a by the rumor cell effect. So i think all of that means that were likely to see an extended cycle and i think it extends into between march and june. Um – and that would be a new phase and i think that makes sense as the network is seeing deeper adoption, um and richer adoption. I think you know a the volatility comes down over time and b. The cycles extend and then the performance lowers over time, but thats, okay, because we can find the other new network adoption tokens in the space and they should follow how this all works. So its all there and available – maybe maybe youre, really scared of all of this, like i cant understand the technologies too much for me, you know im just a commodity guy, well, copper, because we need a lot of it for electricity, so coppers, probably in a secular Bull market so that thats a thats an a more traditional way of playing it.
So theres theres numbers of ways you can layer into this. If you maybe youre interested in metaverse, theres, a metaverse etf now and its called meta meta, i think so. Thats tradable too um, so theres lots of ways to get involved. Um and even the big platforms. Facebook is telling you its going to the mess of us. You may hate facebook, but its the worlds biggest net network and theyre about to introduce money onto their network and going to the metaverse bingo will take that number two is apple apple made it absolutely clear. The future is for them, augmented reality. Why is apple so powerful computing power? This is computing power. Facebook cannot compete because facebook needs to put the computing in any device, so theyve got virtual reality. Goggles with all the computing power in it, apple, dont need to apple, can just bring the computing power from the phone into glasses. That can be augment your reality and theyre building out everything augmented reality because of the phone data. Google googles the worlds largest data repository ai thats, their game, so there you go theres vr, the metaverse crypto and um uh yeah. I mean all of these things all come together and and ai with google all come together, and then we look at twitter. Twitter is now transforming itself from a network to a money network as well, because now you can use the bit more bitcoin, lightning payment, okay, so heres the stocks that we all know.
They are all part of this. We dont have to look for this little up and coming stock. The problem is, is you know what does apple go up? You know, what is it now two trillion dollars? What does it go to? Can it be worth 10 sure? But you know a 5x in the crypto world in this exponential world is not as exciting, so it kind of pushes us to look for some of the early adoption networks that stopped building it. I mean its a shame. Epic games is not a public company. Epic games is epic, i mean thats, you know thats huge and they want to have an open version of the metaverse, unlike facebooks version um, and so, but we cant get into it yet because its still a private company and its worth 60 billion already.