Former Goldman Sachs executive Raoul Pal\u00a0has revealed on social media that he is \u201cmore than irresponsibly long ETH right now,\u201d even adding leverage to his position on the second-largest cryptocurrency by market capitalization.<\/p>\n
In a tweet, Pal noted that this is \u201cby far and away\u201d the biggest personal position he has had in his entire life, and that heh as a time horizon for the trade between six and nine months.<\/p>\n
In a follow-up tweet, the former Goldman Sachs executive noted that he also owns BTC and \u201ca whole bunch of other crypto\u201d and believes other undervalued cryptocurrencies in the future are out there.<\/p>\n
Nevertheless, when a user asked Raoul about his ETH position, he noted that sometimes \u201cyou want to take risk,\u201d and that in this case, he is willing to take the risk because he thinks \u201cthe rewards will compensate for that risk.\u201d As CryptoGlobe reported, Pal has said he sees ETH go to $20,000 \u201cthis cycle\u201d based on Metcalfe\u2019s Law.<\/p>\n
Raoul Pal said at the time that it\u2019s \u201call Metcalfe\u00b4s Law,\u201d and that \u201cETH = BTC\u201d whether investors like it or not. He started pointing towards a model his team created to demonstrate Metcalfe\u2019s Law on the BTC network using active addresses and the cryptocurrency\u2019s price, as well as market capitalization, before showing Ethereum looks like BTC in its early days based on that metric.<\/p>\n
Earlier this week, Pal noted that there still appear to be similarities in ETH\u2019s performance this year and BTC in 2017.<\/p>\n
Ethereum\u2019s price notably reached a new all-time high above $4,400 this week after the Altair Beacon Chain was successfully launched on the network with 98.7% of nodes upgrading to it. The Altair upgrade to the Beacon Chain marks another step taken toward the network\u2019s transition to a\u00a0Proof-of-Stake (PoS)<\/strong>\u00a0consensus algorithm.<\/p>\n The cryptocurrency\u2019s price has also been rising thanks to the boom in decentralized finance and non-fungible tokens on top of its network, as demand for these products leads to higher demand for ETH transactions, paid for in ether.<\/p>\n The daily issuance of Ethereum has, on a few occasions, gone negative thanks to the network\u2019s EIP-1559 upgrade. The upgrade changed Ethereum\u2019s monetary policy by burning part of the transaction fees in every new block that previously belonged to Ethereum miners in an effort to alleviate the fees for network users.<\/p>\n Over the last three days, Ethereum\u2019s supply has decreased by over 2 million ETH.<\/p>\n DISCLAIMER IMAGE CREDIT
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.<\/p>\n
Featured image via\u00a0Unsplash<\/p>\n