Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, stated in a new article that he has restructured his portfolio in favor of Ethereum (ETH). Hayes touched upon the role of Ethereum in the crypto ecosystem and shared his year-end expectation for the ETH price.
Hayes announced that he has restructured the 50-50% BTC and ETH portfolio at the beginning of 2022 to 25% BTC and 75% ETH. Sharing his ideas that ETH will exhibit a much higher price performance than SOL, AVAX, LUNA, ADA and DOT in the long run, Hayes also argued that ETH can achieve a price performance that can reach $10,000 by the end of the year.
Hayes said that Ethereum is "not money, but rather a commodity that powers the world's largest decentralized computer."
“I would like to own an asset that yields positive returns at a time when global interest rates are negative, and that asset is currently ETH. So I should have more ETH in terms of interest rate than Bitcoin. The price of ETH is enough to include future ETH cash flows. This will change when it rises. At the end of the year, I believe ETH will rise above $10,000 when things calm down.”
Former CEO Hayes explained that ETH is "perhaps the most expensive" among Layer 1 smart contract platforms, given the underlying activity on the platforms. According to Hayes, ETH is cheaper than both Solana's SOL token and Polkadot's DOT token, and much cheaper than Cardano's ADA token, which he says is "traded purely on hope".
“If you are an investor who already owns some of these coins, or if you need to choose a Layer 1 smart contract to invest, you don't want to buy the cheapest one.”
Hayes added that he expects Ethereum to "significantly outperform" the tokens of rival Tier 1 chains that advertise itself as "faster and cheaper" than Ethereum.
“This was said from 2020 to 2021, but now Ethereum supports extremely positive price fundamentals in terms of flow and returns on a capital basis.”
Hayes also noted that the ESG (environmental, social and corporate governance) narrative surrounding ETH will attract more investors to the asset as the network moves to a more energy-intensive consensus mechanism, proof-of-stake (PoS).
“While more traditional-minded investors are investing in ETH because of ESG, investment advisors will ultimately see ETH as a bond their clients can invest in.
There are a significant number of asset managers who can invest in crypto. But the proof-of-work consensus mechanism is thought to be a waste of energy."