• Sun. Aug 14th, 2022

$ETH: Point of Sale Manager at BitOoda Explains Why Ethereum Will Overthrow Bitcoin

ByHazel R. Lang

Jul 24, 2022

On Saturday, July 23, Vivek Raman, Head of Proof of Stake (PoS) at FinTech digital asset firm BitOoda, explained why $ETH will return $BTC.

BitOoda, which was founded in New York in 2017, was “founded to provide transparency and accelerate the global adoption of transformational technologies by promoting efficient marketplaces through innovative and professional capital markets solutions”. Founders Tim Kelly and Rob Madden “have leveraged their expertise to create a technology and financial services company that aims to evolve digital asset markets through an innovative data-driven platform that offers financial products generation, highly tactile brokerage services and applied research solutions that put the interests of our clients first BitOoda claims to be “the only institutional digital asset platform regulated by the SEC, CFTC and the DFS”.

On July 18, BitOoda announced the hiring of Raman, who is also co-founder and managing partner of residential real estate buy-to-let platform Resinvest. BitOoda’s press release mentioned that “with this expansion, BitOoda plans to launch a number of financial solutions focused on PoS and ETH, including a series of new research reports, structured products, and trading strategies.”

Raman, who has nearly nine years of trading experience at investment banks Morgan Stanley, UBS, Deutsche Bank and Nomura, said at the time:

I couldn’t be prouder to join the BitOoda team. BitOoda’s vision to create a fully compliant digital asset investment bank, where we can bring sophisticated financial research and products to institutional players, is exactly what the crypto space needs to grow sustainably.

Well, yesterday, Raman, who goes by the nickname “VivekVentures.ethon Twitter, posted a thread explaining why he thinks $ETH will return $BTC:

He went on to say:

  • What if that roughly $18 million daily selling pressure subsided – what would that do to the price of BTC? Wouldn’t that naturally drift with each new marginal buyer instead of being constantly weighed down by daily selling pressure? This is exactly what will happen to ETH after the merger
  • Today, ETH has a similar story: 14,250 ETH issued daily to miners (+ validators). That’s ~$21m in potential daily sell pressure (technically less as commit block rewards can’t be sold yet, but let’s ignore) After the merge, the daily sell pressure of ~$21m goes to $0
  • In fact, in most cases, net daily issuance becomes negative because enough ETH is burned (via EIP-1559 burning tx base fee) that more ETH is removed than issued. This means there could be net daily buying pressure on ETH (without a dollar of external capital coming in)
  • This is the economic sustainability argument for ETH. If removing all of the daily selling pressure from BTC would help the price of BTC, then it stands to reason that bringing net issuance of ETH to zero (or negative) is bullish for ETH There is no more structural selling pressure after the merger
  • Fusion is coming; ETH will turn into an economically (and environmentally and theoretically gambling) sustainable asset – arguably more so than BTC…

On July 21, Russian-Canadian programmer Vitalik Buterin, who is the creator of Ethereum, shared his thoughts on “the longer-term future of the Ethereum protocol” at the annual Ethereum Community Conference (EthCC) at Paris, France.

Buterin began his speech by saying:

The Etheruem protocol is currently in the middle of this long and complicated transition, and it’s a transition to becoming a system, which is much more powerful and robust in many ways, isn’t it?

At the end of last year I published this kind of updated roadmap document, where I talked about these five major categories of things that are happening in the land of the Ethereum protocol, where there is has the merge, the surge, the edge, then a little lower is going to be the bleed and the madness, right?

The merger is proof of stake. The Surge is sharing, and The Verge is Verkle Trees, The Purge is things like state expiration and old history deletion, and The Splurge is basically just all the other fun stuff.

According to data from TradingView, on Bitstamp, $ETH is currently (as of 19:18 UTC July 24) trading around $1600.00.

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Featured image by vjkombajn via Pixabay.com

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