The co-founder and CEO of embattled crypto exchange platform BitMEX says that he’s rebalancing his portfolio in favor of leading smart contract platform Ethereum (ETH).
In a new essay, Arthur Hayes says that unlike top blockchain Bitcoin (BTC), Ethereum is not a cryptocurrency that can be used as money, but rather an asset of the planet’s biggest decentralized network.
“Ethereum is not money, it is a commodity that powers the world’s largest decentralized computer… The Ethereum community clearly decided that ETH is a commodity used to power this computer, not a pure monetary instrument.”
Hayes notes that at the start of 2022 his portfolio was split equally between Bitcoin and Ethereum. However, he says he reoriented his crypto quota to have 25% BTC and 75% ETH as Bitcoin currently yields nothing in the face of economic turmoil.
“As global real rates are deeply negative, I want to own an asset that has a positive yield in its own currency – and at the moment, that is ETH. Bitcoin yields nothing. Therefore, from a pure interest rate differential perspective, I should own more ETH than Bitcoin.”
The executive then says that he expects Ethereum to vastly outperform its competitors such as Solana (SOL), Avalanche (AVAX), Terra (LUNA), Cardano (ADA), and Polkadot (DOT).
“I expect ETH to significantly outperform any layer-1 chain that constructed a narrative that it is ‘faster and cheaper’ than Ethereum.
That narrative worked from 2020 to the end of 2021, but now Ethereum supports extremely positive price fundamentals from a flow of and return on capital basis.”
Hayes then predicts that ETH could hit a five-digit price tag.
“When the dust settles at year-end, I believe ETH will be trading north of $10,000.”
Ethereum is trading for $3,435 at time of writing, a 3.5% increase on the day.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Vadim Sadovski
