$ETH: Head of PoS at BitOoda explains why Ethereum will reverse Bitcoin

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

Founded in New York in 2017, BitOoda was “created to deliver 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 “leveraged their expertise to create a financial technology and services firm that aims to develop digital asset markets through an innovative data-driven platform that offers next-generation financial products, high-touch brokerage services and applied research solutions that put our clients’ interests at first.” BitOoda claims to be “the only institutional digital asset platform regulated by the SEC, CFTC and DFS.”

On July 18, BitOoda announced the hiring of Raman, who is also the co-founder and managing partner of residential property buy-to-let platform Resinvest. BitOoda’s press release mentioned that “with this expansion, BitOoda plans to launch a range 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, expected at the time:

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

Well, yesterday, Raman, who goes by the moniker “VivekVentures.eth” on Twitter, posted a thread explaining why he thinks $ETH will reverse $BTC:

He went on to say:

• “What if the ~$18mm daily selling pressure disappeared – what would that do to BTC’s price? Wouldn’t it naturally go up with each marginal new buyer versus being constantly weighed down by daily sales pressure? This is exactly what will happen to ETH after the merger“
• “Today, ETH has a similar history: 14,250 ETH issued to miners (+ validators) daily. That’s ~$21mm in potential daily selling pressure (technically less since validator block rewards can’t be sold yet, but let’s ignore) After merging, ~$21mm in daily selling pressure goes to $0“
• “In fact, in most cases net daily issuance becomes negative, since enough ETH is burned (via EIP-1559 burning tx basefees) that more ETH is removed than issued. This means there may be net daily buying pressure on ETH (without a dollar) of external capital coming in)“
• “This is the argument for ETH’s financial sustainability If removing all daily selling pressure from BTC would help the BTC price, then it stands to reason that bringing net ETH issuance to zero (or negative) is bullish for ETH. There is no more structural sales pressure after the merger“
• “The merger is coming; ETH will transform into an economically (and environmentally and game-theoretically) sustainable resource – arguably more so than BTC…“

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

Buterin began the lecture by saying:

“The Etheruem protocol right now is in the middle of this long and complicated transition, and it’s a transition towards becoming a system that’s much more powerful and robust in many ways, right?

“At the end of last year, I published this kind of updated roadmap document, where I talked about these five big categories of things that are happening in Ethereum protocol land, where there’s the merge, the rise, the limit and then a little bit lower is going to be the purge and the splurge, right?

“The merger is proof of effort. The Surge is breaking, and The Verge is Verkle Trees, The Purge is things like condition expiration and erasing old history, 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 on July 24) trading around $1600.00.

Image credit

Featured image by vjkombajn via Pixabay.com