Macro guru Raoul Pal is revealing why he changed his mind about Bitcoin (BTC) in favor of Ethereum (ETH) as his main crypto holding.
In a new interview on Real Vision, Pal says he originally thought Bitcoin would prevail to be the most widely held and best-performing crypto asset.
However, Pal says big players from the institutional investment industry ultimately convinced him otherwise.
“When my views on Bitcoin changed significantly, I don’t think less of it as an asset, but I thought about it in network terms and the community, and I thought the community is not attracting new people. And the job of a network is to attract new participants. And if the network was actively rejecting people, I thought it was going to underperform.
Which was surprising to me because I was very bullish on Bitcoin first, because I thought, look, it’s going
to have a larger place. And what happened is almost immediately, and it made me change my mind, is
the institution side going, well, I actually don’t this space. And I started buying ETH.”
The former Goldman Sachs executive says that a narrative switch-up is occurring amongst institutions whereby Bitcoin is no longer the only crypto asset being taken seriously.
“Literally every other day, I’m speaking to the world’s largest financial institutions who put me in front of their investment committees and talk them through crypto and how to invest. And the narrative change really surprised me. It was always Bitcoin. Can we put Bitcoin on our balance sheet? How should we invest in Bitcoin? What’s the diversification?
Move very quick to, look, Ethereum feels it’s a technology play that makes sense with the applications. We are interested in DeFi, etc. Then it very quickly became, oh, shit, how do we get involved in Web 3.0?”
Pal says the power of Ethereum to generate network effects combined with its technical capabilities make it the “superior bet” in the crypto space, mimicking the early adoption of the internet.
“This is like the internet. That moment is like, okay, this is far superior a bet. That’s why I took that bet. And then I eventually shifted majority into Ethereum and then took other bets in the space to express macro views.”
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Source: https://dailyhodl.com/2022/03/04/is-ethereum-eth-the-superior-bet-heres-why-raoul-pal-changed-his-mind-about-bitcoin-btc/