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 markets through innovative and professional capital markets solutions.” Founders Tim Kelly and Rob Madden “have leveraged their experience to create a financial services and technology company that aims to evolve digital asset markets through an innovative data-driven platform that delivers generation of financial products, Highly tactile brokerage 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 DFS.”
On July 18, BitOoda announced the hiring of Raman, who is also a 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 number 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 more proud to join the BitOoda team. BitOoda’s vision of creating a fully compliant digital asset investment bank, where we can bring research and sophisticated financial 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, he 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 goes away? What would that do to the price of BTC? Wouldn’t that change naturally 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 ~$21 million in potential daily selling pressure (technically less, as pledge block rewards can’t be sold yet, but let’s ignore) Post-merger ~$21 million daily selling pressure is reduced to $0“
- “In fact, in most cases, net daily issuance turns negative because enough ETH is burned (via the EIP-1559 burn tx base fee) that more ETH is removed than is emitted. This means that there could be daily net buying pressure on ETH (without a dollar of external capital coming in)“
- “This is the economic sustainability argument for ETH. If removing all daily selling pressure from BTC would help BTC price, then it stands to reason that taking ETH net issuance to zero (or negative) is bullish for ETH. more structural selling pressure after merger“
- “Fusion is coming; ETH will become an economically (and environmentally and theoretically) sustainable asset, possibly more so than BTC…“
On July 21, Russian-Canadian programmer Vitalik Buterin, 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 his speech by saying:
“The Etheruem protocol is currently in the midst of this long and complicated transition, and it is a transition to becoming a system that 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 main categories of things that are happening in Ethereum protocol land, where there’s melting, rising, edge, then a little bit lower goes to be bleeding and 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 removing old history, and The Splurge is basically all the other fun stuff.”
According to TradingView data, on Bitstamp, $ETH is currently trading (as of 19:18 UTC on Jul 24) around $1,600.00.
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