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Lyn Alden and Raoul Pal: Is Ethereum a Good Investment?
Episode 211
Lyn Alden, CEO and founder of Lyn Alden Investment Strategies, and Raoul Pal, CEO & cofounder of Real Vision Group & Global Macro Investor, explain their thinking about Ethereum and its native token, and talk about their perspective on GameStop. In this episode, we discuss:
- why Raoul views ether as similar to bitcoin at a macro level (1:25)
- why Lyn decided ETH was not currently investable (5:06)
- an analysis of utility protocols (John Pfeffer’s paper) (6:55)
- counterarguments to John Pfeffer’s paper (9:31)
- how to allocate between BTC and ETH (11:22)
- why Raoul also invested in other coins beyond BTC and ETH (11:47)
- whether Metcalfe's law applies equally to all kinds of networks (13:35)
- why Lyn views Ethereum’s use case as circular, and why that makes it less investable (15:09)
- whether Ethereum 2.0 and Ethereum Improvement Proposal 1559, and whether that could make ETH more investable (21:20)
- the impact of fees on the value of Ethereum (23:36)
- Raoul's views on what S-Curves and the Lindy Effect indicate about the development of a currency (25:22)
- how high fees make DApps less attractive, while low fees potentially decrease demand for ETH (27:06)
- how Lyn believes demand for DeFi is to circumvent compliance and know-your-customer processes, and she doesn't also see that as a downside for Bitcoin (33:10)
- how the regulators are behind innovation in cryptocurrencies, particularly around taxation (36:32)
- Raoul's and Lyn's predictions for the ETH price by end of 2021 (41:45)
- what GameStop says about the democratization of financial information (45:32)
- whether smart contracts could play in preventing situations similar to what happened with GameStop and/or Robinhood (49:03)
- how blockchain technology could be used to prevent a situation in which the hedge funds could short more shares than existed (54:03)
- how the GameStop/Robinhood saga is a giant advertisement for self-custody (54:53)
- whether r/WallStreetBets' behavior was market manipulation or not (56:53)
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Episode links:
Lyn Alden: https://twitter.com/LynAldenContact
Lyn Alden Investment: https://www.lynalden.com/
Raoul Pal: https://twitter.com/RaoulGMI
Real Vision: https://www.realvision.com/contributor/raoul-pal
Global Macro Investor: https://www.globalmacroinvestor.com
Raoul's tweet storm on Ethereum: https://twitter.com/RaoulGMI/status/1347013567799848961?s=20
Lyn Alden’s research paper on Ethereum: https://www.lynalden.com/ethereum-analysis/
Raoul Pal’s tweet: ETH equals BTC: https://twitter.com/raoulgmi/status/1347013567799848961?lang=en
John Pfeffer’s paper: https://s3.eu-west-2.amazonaws.com/john-pfeffer/An+Investor's+Take+on+Cryptoassets+v6.pdf
Network effects and Metcalfe’s Law: https://saylordotorg.github.io/text_developing-new-products-and-services/s04-12-there-is-power-in-numbers-netw.html
Quantity Theory of Money: Published on 4 years, 10 months ago