Bloomberg Analyst Says Ethereum Revolutionizes Fintech, Predicts Rally As ETH Supply Is Squeezed
Bloomberg Chief Commodity Strategist Mike McGlone predicts a rally for Ethereum (ETH) as he says the leading smart contract platform is poised to change the financial technology landscape.
In a new segment with BNN Bloomberg, McGlone says Ethereum is able to support its value with the reality that dollar-pegged stablecoins rely on the network to function.
“[Ethereum] is basically doing to the world what Netflix did to Blockbuster. It’s revolutionizing fintech and things like that. The most important thing about Ethereum is that it enables the most traded cryptos on the planet [which] are tokenized versions of the dollar. Basically, the dollar is the most traded crypto. It trades more than Ethereum and Bitcoin combined. And that’s because Ethereum tokens make it possible.”
The analyst says he expects ETH to start rallying against Bitcoin (BTC) driven by shrinking supply and rising demand. According to McGlone, a favorable supply/demand ratio means the price “has to go up” for ETH.
“That trend of Ethereum still outperforming Bitcoin remains intact, so it’s been hovering around this good support around $1,000, good resistance around $2,000, but what it did this year was kind of revolutionary.
It switched to a proof of-[stake] platform which means practically no consumption of energy in the middle of an energy crisis. Wow, that’s kind of a win-win, so you’re doing well there. The main thing I look at from a commodity standpoint is, “What’s going on with supply and demand?”
Supply is clearly going down and going lower, and demand and adoption are clearly going higher, so I see it as unless something changes in these trends, the price has to go up over time. I look at the price, it’s relatively too cold. It should rebound and continue to outperform Bitcoin. It has over time outperformed things like the Nasdaq, and what is important is that it has done so with progressively lower volatility. What does that mean? It migrates into the mainstream with maturation.”
You can see the entire interview here.
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