Mike McGlone, senior commodity strategist at Bloomberg Intelligence, pointed to the law of supply and demand, claiming that Bitcoin (BTC) and Ethereum (ETH) will rise.
Standing out with his successful predictions, Mike McGlone said in a new interview that Bitcoin and Ethereum’s constantly falling supply, along with the increasing adoption, will lead to an appreciation in prices for the two cryptocurrencies.
“In the first two, Bitcoin and Ethereum, there is an identifiable decrease in supply on a code-by-code basis. Now Ethereum is less in code, but Bitcoin has clearly identifiable decreasing supply. When you look at demand and adoption, you see it clearly increasing. So Adam Smith and the economy are simply “According to the rules, prices should rise over time unless something changes that trend negatively. And I just see adoption and demand increasing. And it’s too early yet. So far less than 1 percent of global stocks are in crypto.”
According to McGlone, one advantage of cryptocurrencies such as BTC and ETH over traditional commodities is that they do not have storage costs.
“Now you can actually easily buy Bitcoin and Ethereum as commodities, keep them on your phone, and never have to pay for that storage. In commodities you still have to pay an average of 5 percent, maybe even 10 percent storage.”