Raoul Pal has predicted that Ether will perform far more strongly than Bitcoin in the coming years—setting an ambitious target price of $20,000.
In an in-depth article written for his subscribers, the Real Vision CEO argued that ETH is following the exact same trajectory as BTC—reminding readers that the world’s second-largest cryptocurrency launched six years after Bitcoin.
Pal also believes Ether has the potential to have a larger market cap than Bitcoin over time. But with a market cap of just $143 billion, the blockchain that brought us initial coin offerings, non-fungible tokens and decentralized finance will have its work cut out to leapfrog BTC’s $570 billion valuation. He added:
“It is the SAME as Bitcoin, at the SAME point in its adoption cycle, with the exact SAME price and its market cap is rising faster… and suggests that its adoption cycle might be more dramatic too.”
Indeed, Ether’s outperformance of Bitcoin has become a recurring theme of late. ETH surged by 482% over the whole of 2020—eclipsing BTC’s growth of 300.7%. After hitting all-time highs of $42,000 earlier this month, Bitcoin has given back most of its gains and is currently sitting just 4.4% higher than where it was at the start of the year. Ether? Up 70%.
It isn’t all bad news for Bitcoin, however, despite the fact that it’s just teetered on the brink of losing $30,000. He believes that BTC still has a good chance of surpassing $50,000 within a month—and $350,000 within three years.
Pal went on to say that he plans to reallocate his crypto holdings when the next correction occurs. He explained that he has previously owned “much more Bitcoin” because of how it is a mature asset, but now plans to increase his ETH weighting from 17% to 35%.
And while Bitcoin and Ethereum’s charts may look the same, Pal went to great pains to stress that it is ill-advised to pit different cryptocurrencies against each other:
“They all have wildly different attributes. You can’t compare them to Bitcoin or Ethereum, or even compare Bitcoin to Ethereum, to do so is flat out wrong. Most are not really in competition with each other, they are complements. They all aim to solve different issues. And together they create the digital asset ecosystem, which is an order of magnitude bigger than any one of the smaller ecosystems.”
Pal went on to stress that the future is interoperable, and that one day different blockchains and cryptocurrencies will be seamlessly connected. He went on to give a clever example that powerfully underlines why this is necessary:
“I’m writing this on Microsoft Word, on an Apple Mac in Little Cayman and I’ll put it into Dropbox cloud for Amanda to edit in a different place, convert it to a PDF, upload it to the server somewhere else (who knows where) and auto-send an email that you can read on any type of device, running any type of operating system and any type of email platform.”