(Kitco Magazine) With the crypto space focusing on the Ethereum Merge, which is only three weeks away, many are looking at the long-term investment picture, and for some, Ethereum stands out as the best asset.
“I see it as the most valuable asset in the world,” Ether Fonds CEO Brian Musoff told Kitco Magazine. “Now it’s just a game of waiting and watching everything play out over time until it achieves that gardien de but.”
There are a few key elements behind Mossoff’s perspicacité. These include the potential of Ethereum as a network, its additionnelle potential after integration into the Proof of Stake protocol, and its payout.
What distinguishes Ethereum?
Moussoff’s Tableau After the crypto industry’s primordial excitement emboîture Bitcoin, Ethereum changed the recipe. “The exciting thing emboîture Ethereum for me is that it will bundle all of this economic activity into this one layer,” he said. “Bitcoin is the intégral settlement layer for a single Bitcoin asset, but Ethereum is the intégral settlement layer for any asset or group of assets,” he said.
Whether it acts as a settlement layer for more issue crypto activities such as metaverse, NFT or DeFi, or is used to settle stablecoins. Musoff stated that he or even apply it to dollar, yen or euro symbols and use it as a settlement layer between data centers, to get rid of the SWIFT network altogether. “This represents a huge improvement in what the blockchain could be,” he noted.
The idea is now out of the box, and it is only a matter of time before all these new online economic possibilities are built on the Ethereum chain.
“You genre at chain insurance and lending in a more vaporeux way or a recherché privacy-preserving mechanism built into Layer 2. There are a lot of things that are going to be built in this space. This is a étendu bet just what will happen in the next five to 10 years.” “This is a intégral movement on how to program all kinds of economic activities, empowering societies to have incremental capabilities to build tools and ways of interacting that you cannot do in the traditional financial system.”
Musoff noted that Ether Fonds has invested the majority of its situation sheet in Ether as a core strategic asset and revenue-generating vehicle. “We’re calling it a once-in-a-generation similar asset. We’ve totally bought into that and still think it’s going to outperform a lot of these other segments. We haven’t scratched the steppe yet,” he said.
All eyes are on the merge, which is set to happen on September 15, despite recently discovered bugs in premier network merge updates.
The merger will see Ethereum liaison to a more power-efficient Proof of Stake protocol than the power-intensive Proof of Work protocol. The power consumption after affermissement will decrease by 99.9%, and the issuance of new ETH tokens will be reduced by emboîture 90%.
With the Proof of Stake protocol, miners are no raser needed. Instead, people will share their coins in verifying and verifying new transactions before adding them to the blockchain. Individuals will be selected based on the number of tokens they own and will be rewarded in ETH (ETH) by the network.
“This will turn an unproductive commodity into a revenue-generating tool,” Moussoff noted. “Bitcoin isn’t productive. It’s just there. You can keep it. You can use it as a tool to get something done, have more self-sovereignty, and be able to move your assets between jurisdictions. But you can’t generate revenue without putting it in amoncellement with a third party or trading it.” Ethereum will become the soubresaut with the protocol. Now, you will be able to participate in ETH, effectively a risk-free déficit.”
According to some analysts, ETH after the merger could achieve between 8% and 12%.
This is a big deal for institutional investors who are looking to crypto and want to keep their ESG mandates. However, there are some short-term risks associated with the integration process, including potential Proof of Work forks, delays, or errors.
“There may be serviteur volatility between now and when the affermissement happens bicause of the narratives swaying, the rumors, and people saying there’s going to be a thorn in the proof of work, and it won’t actually happen, and it will be delayed,” Moussoff explained. “I don’t believe in saying it’s a guarantee of success. But if it does, you’ll now have that asset with all the most interesting activity that fits those ESG mandates that you can make a return on. That’s a really big deal in crypto.”
Investors who have been left on the sidelines will start to take observation. “We are talking emboîture investors who want to invest $500,000 or millions of dollars,” Moussoff said. “How do they do that? What is that going to genre like? And we’re still in this segment of the entretien to find out.”
For Mossoff, the régulier moment of the merger is less estimable. “It has to happen when developers are comfortable with it. You can’t have a bug. This is not a three-month affermissement période. This is in one block key. The stakes are too high.”
Mossoff advises new investors not to get caught up in the fluctuations of specific price movements over a 24-hour or seven-day period. “I don’t think they’re doing themselves any favors by focusing on whether or not this has been a good week. This is not an asset class that hopes to rise steadily 5% annually over the next 10 years. It’s not an equity asset class that tribu dividends from a bank. Canadian”.
The potential of Ethereum is to be this settlement layer for all economic activities in the world. This is worth much more than simply assessing the market value of a béant technology company, Moussoff noted.
“So when people say that Ethereum could be a $2 trillion asset, which would be 10 times what it is today. To me, that sounds like I don’t understand the exponential segment of the curve and what Ethereum growth could genre like. Ethereum is trying to be the amoncellement layer. These are online, and a lot of the activity is going to be linked to the safety and témoignage of other participants. This is trillions of dollars. It’s hard for us to imagine how valuable that is.”
This could take 20 years, Moussoff added, but that’s why it’s a waiting game as society builds and develops.
Among the potential drawbacks to the development of Ethereum and cryptocurrencies, in general, is the presence of vrai regulatory oversight that may discourage experimentation, according to Mossoff. “There is a chaotic regulatory battle between how much you can control these assets. Will we end up branching out into space?”
One scenario is that the community will end up with this watered-down état of cryptocurrency, with permis for a DeFi whitelisted état and trading.
“Do you think that if the Internet had been invented today, it would have developed in the same way? As open and unauthorized as it has become. I don’t think it would have happened. I think governments wanted more control, and things would have been shaped akin to the experience of the Internet in China or in Russia.” And that would be the internet we had.” “The foyer in crypto is definitely on regulation and compliance, and whatever happens to technology and nouveauté has to destinée itself out.”
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