Gen Z Crypto Millionaire Says Ether Could Surpass Bitcoin as # 1 Crypto Before Mid-2022 – And May ‘Power Rails’ of Global Finance | Currency News

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Gen Z Crypto Millionaire Says Ether Could Surpass Bitcoin as # 1 Crypto Before Mid-2022 – And May ‘Power Rails’ of Global Finance | Currency News


Rahul Rai, Co-Head of Market Neutral at BlockTower Capital.

  • Rahul Rai, a 24-year-old hedge fund founder, believes ether could overtake bitcoin in the next six months or so.
  • The Ethereum token has the potential to “power the rails of all global finance” through the use of DeFi, he told Insider.
  • Ether has recently hit new highs and a total value of around $ 100 billion is locked into the grid.
  • Sign up for our daily newsletter here, 10 things before the opening bell.

Crypto hedge fund manager Rahul Rai believes the market will see ether overtake bitcoin in terms of market cap before the middle of next year, in what pundits are calling “the turnaround.”

The native ethereum network token hit record highs above $ 4,600 this week, after CME Group, the world’s largest derivatives exchange, announced it would launch micro ether futures early December.

Ether’s rise to power has been propelled by a series of developments that have underscored the growing momentum of the digital market beyond pure cryptocurrencies.

Facebook recently announced that it will rebrand itself as Meta, as a tribute to its commitment to expanding its business in the Metaverse, while metaverse gaming platform Sandbox raised $ 3 million per day. Even K-pop sensations BTS are set to launch digital photo cards in the form of non-fungible tokens (NFTs), thanks to a collaboration unveiled this week between their agency and South Korea’s largest cryptocurrency operator. .

The Ethereum network is now worth around $ 100 billion in total, according to data from The Block. Yet Ethereum is still far second behind bitcoin in terms of market value. That might not be the case for very long, according to Rai, co-head of market neutrality at BlockTower Capital.

“I really think there is a very good chance that the ether will surpass bitcoin. I wouldn’t be surprised if that happened during the cycle, ”the 24-year-old told Insider.

“Very difficult to predict when this cycle will end. My take is in the middle of next year, ”he continued.

Bitcoin is the number one crypto with a market cap of over $ 1,000 billion, while Ether is in second place with a market cap of $ 535 billion, meaning it is getting closer to its rival. .

Two years ago, bitcoin made up almost 67% of the entire crypto market, but its share has fallen to 45%. At the same time, the market share of ether has increased from 8.5% to almost 20%.

This year, bitcoin has hit record highs of nearly $ 70,000, fueled by large investors including cryptocurrency in their wallets as a way to diversify their holdings and as a hedge against inflation.

“Bitcoin is a store of value, it’s digital gold. And so its market cap, at most, is going to be somewhere around gold – maybe bigger, because it has certain properties that are better than gold. But that’s pretty much the benchmark you’re going to use to cap the size of your market, ”Rai said.

Gold’s market capitalization is currently around $ 11 trillion, according to data from CompaniesMarketCap.

Rai, who sold his crypto hedge fund Gamma Point Capital for $ 35 million this year, said the versatility of the ethereum network would be the main draw for developers and investors.

Ethereum is a Layer 1 network that enables payments, loans, exchanges, and staking. It allows peer-to-peer activity without an intermediary, broker or bank. Unlike the Bitcoin network, the blockchain is programmable, which means it can run other applications like smart contracts, NFTs, and even the metaverse.

“Ethereum is trying to fuel the rails of all global finance going forward, and it’s a much bigger market, if it is successful,” Rai said.

“If this is successful, and if the thesis comes to fruition, then the market value will capture billions of dollars in global activity, and it’s a much bigger market than (where) bitcoin is going up (to),” said he added.

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