Popular investor Raoul Pal explained why he changed his mind on Bitcoin (BTC) in favor of Ethereum (ETH). In a new interview with Real Vision, Pal initially said that he thought Bitcoin would continue to be the most widely held and best-performing cryptocurrency. However, Pal said that big players in the institutional investment industry eventually convinced him otherwise:
“When my views on Bitcoin change dramatically, I don't think of it any less as an asset. But when I think about it from a network and community perspective, I've come to the conclusion that the community doesn't attract new people. And the job of a network is to attract new participants. And if the network is actively rejecting people, I'm convinced that it will underperform. "It was surprising to me because at first I was very optimistic about Bitcoin. What happened next happened almost immediately and made me change my mind. And I started buying ETH."
The former Goldman Sachs executive said that among institutions, Bitcoin is no longer the only crypto asset that is taken seriously.
"I've been talking to the world's biggest financial institutions talking literally every other day about how they're going to invest. And the narrative change really surprised me. Previously it was always Bitcoin. Can we put Bitcoin on our balance sheet? How should we invest in Bitcoin? What is diversification? ? Now they think Ethereum is a logical technology. We are interested in DeFi etc. Then everything developed very quickly, the thoughts of how to get involved in Web 3.0 started."
Pal says Ethereum’s power to create network effects combined with its technical capabilities makes it “superior” in the crypto space, mimicking the early adoption of the internet.
"It's like the internet. It's a far superior bet. And I eventually shifted my investments to Ethereum and then made other investments in the space to express macro views."