The Ethereum Merge “Brings Along the Magic”

The Ethereum Merge “Brings Along the Magic”

The Ethereum Merge could bring something “magical” to leading smart contract platform. This according to macro guru and Real Vision CEO, Raoul Pal.

In a new ‘Ask me Anything’ video on his Real Vision channel, Pal said that Ethereum’s transition to proof-of-stake and the introduction of the ‘magical’ yield will be attractive for investors. Furthermore, with mining phased out in the new proof-of-stake consensus dynamics, a supply shock is imminent:

“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 also 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.”

Pal therefore is very bullish and predicts that the next twelve months will be very good for crypto and Ethereum:

“You’ve got a demand shock, also the lack of ESG 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 this 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 that the coming 12 months look to probably be very good for digital assets.”

At the time of writing, ETH is trading at $1,632 according to CoinMarketCap.

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Source: igaming