Bloomberg Strategist: Ethereum Is ‘Doing to the World What Netflix Did to Blockbuster’
Siamak Masnavi - CryptoGlobe
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Last Friday (28 October 2022), Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence (Bloomberg’s research arm on the Bloomberg Terminal”), shared his thoughts on Ethereum ($ETH).
According to a report by The Daily Hodl, here is what McGlone said about Ethereum during an interview on BNN Bloomberg:
“[Ethereum] is basically doing to the world what Netflix did to Blockbuster. It’s revolutionizing fintech and things like that. The key thing about Ethereum is that it’s making possible the most widely traded cryptos on the planet — our tokenized versions of the dollar. Basically, the dollar is the most widely traded crypto. It trades more than Ethereum and Bitcoin together. And that’s because Ethereum tokens are making that possible.“
He also said that he expects Ethereum to continue to outperform Bitcoin:
“That trend of Ethereum still outperforming Bitcoin remains intact so it’s been hovering around this good support around $1,000, good resistance at about $2,000, but what it did this year was somewhat revolutionary.
“It switched to a proof-of-[stake] platform which means virtually no consumption of energy in the midst of an energy crisis. Wow, that’s kind of win-win, so you’re doing well there. The key thing that I look at from a commodity standpoint is: ‘What’s going on with supply and demand?’
“Supply is clearly going down and heading lower, and demand and adoption are clearly heading higher so I look at it as, unless something changes in those trends, price must go up over time. I look at price, it’s relatively too cold. It should go back up and continue to outperform Bitcoin. It has been outperforming things like the Nasdaq over time and what’s significant is that it’s been doing it with incrementally lower volatility. What does that mean? It’s migrating into the mainstream with maturation.“
On 19 October 2022, McGlone shared his thoughts on Bitcoin:
“It’s little surprise that a relatively new asset that had skyrocketed has declined due to the rapid pace of Federal Reserve tightening in 2022, but Bitcoin is showing signs of bottoming and divergent strength in 4Q. The lowest-ever crypto volatility vs. the Bloomberg Commodity Index may portend better performance for Bitcoin…
“Bitcoin’s ascending leading-indicator status and potential transition toward a risk-off asset like gold and US Treasury long bonds may be playing out in 2H [second half of the year]. Our graphic shows the primary headwind for most risk assets in 2022: aggressive Fed tightening to squash inflation. An indication of divergent strength for the crypto may be that its price of around $19,500 on Oct. 18, with the one-year federal funds future (FF13) signaling rates close to 4.75%, was about the same as it was in June, when FF13 was near 3.5%...
“The fact that the benchmark crypto hasn’t dropped along with the latest round of rate-hike expectations may also signal a Fed end game on the horizon. A top potential catalyst for central banks to curtail tightening is for markets, notably stocks and commodities, to do it for them, which may favor Bitcoin.“
He went on to add:
“Bitcoin’s definable diminishing supply is unprecedented on a global scale, and so prices should continue to rise over time unless something unlikely reverses demand and adoption trends, given the laws of supply and demand.“
He also said:
“Bitcoin may be entering an inexorable phase of its migration into the mainstream, and at a relatively discounted price.“
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