Bloomberg Intelligence’s senior commodity strategist Mike McGlone is bullish on the top two largest cryptocurrencies by market cap.
McGlone says in new interview that the declining supply of Bitcoin (BTC) and Ethereum (ETH) amid growing adoption will lead to price appreciation for the two crypto assets.
“In the top two, Bitcoin and Ethereum, there’s definable diminishing supply, by code. Now Ethereum is less by code but Bitcoin, clearly definable diminishing supply.
And you look over demand and adoption, they are clearly increasing. So it’s simple rules of Adam Smith and economics that prices have to go up over time unless something shifts that trajectory negative.
And I only see increasing adoption and demand increasing. And it’s still way early days. I mean less than 1% of global, way less than 1% of global equities, are in crypto.”
According to McGlone, one advantage that crypto assets such as Bitcoin and Ethereum have over traditional commodities is that they don’t incur storage space costs.
“Now Bitcoin and Ethereum, you can actually easily buy the assets as commodity, put it on your phone in storage and never have to pay for that storage.
In commodities, you still have to pay in average 5%, maybe 10% storage.”
Bitcoin is trading at $20,495 at time of writing while Ethereum is exchanging hands at $1,588.
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