Raoul Pal, CEO of Real Vision, believes that instead of viewing cryptocurrencies as assets, investors should view them as digital nations. In a recent blog post, the former Goldman Sachs executive claimed that crypto ecosystems are networks that create both intrinsic and extrinsic value. He argues that the foundation of the Bitcoin (BTC) network is the idea that BTC is an autonomous monetary system free from the corrupting influence of governments.
Pal said he fiercely defends the protocol integrity of how his society operates and, as a result, avoids innovation for the sake of preserving purity. He cited an example from the Bitcoin market as the Catholic Church during the Middle Ages or the gold subculture. In the Bitcoin economy, Bitcoin is the only asset that exists. Therefore, the only option one has if you want to invest money in this market is to HODL (wait for your life) Bitcoin.
By comparison, according to Pal, the Ethereum (ETH) network is more like the intricate American economy. In this system, one can start by buying ETH, which has a deflationary supply, or an amount that decreases over time. Since the value must be maintained and not degraded, your 'central bank' (the bet) follows a prudent monetary policy.
Pal points out that staking on ETH is comparable to buying US government bonds, while decentralized finance (DeFi) can be compared to the riskier banking industry. He predicts that over time, the Ethereum economy will grow to be larger than the Bitcoin economy due to its higher level of complexity. Pal also contrasts the economics of XRP and Ethereum rival Solana (SOL) with those of their respective home countries.
โSolana, on the other hand, could be South Korea right after the Asian crisis, when its currency and stock markets crashed. It was an unbeatable opportunity that outperformed both the USD and the SPX for six years. However, it did not stand the test of time. He was unable to continue with the top performance. Who knows how Solana will develop."
