Bloomberg commodity strategist Mike McGlone has revealed in an interview that he only sees the adoption of Bitcoin ($BTC) and Ethereum ($ETH) increasing over time, and that increased adoption could lead to higher prices.
During an interview with crypto analyst and the host of the “Wolf of All Streets” podcast Scott Melker, McGlone noted that both Bitcoin and Ethereum have “definable diminishing supply, by code” and that looking at their demand and adoption, both are “clearly increasing.”
https://youtube.com/watch?v=_XoZySHo64Q%3Ffeature%3Doembed
McGlone added that, as such, it’s “simple rules Adam Smith and economics that prices have to go up over time unless something shifts that trajectory negative.” In his words, he only sees “increasing adoption and demand increasing.”
The analyst added that both cryptocurrencies are still in their early days, as “way less than 1% of global equities, are in crypto.” The analyst noted there’s a significant advantage for companies in buying both cryptoassets, which is storage costs.
According to the analyst, Bitcoin and Ethereum can easily be bought as commodities and stored in ways that never require payments. On the other hand, he noted, commodities require storage fees that can range between 5% to 10%.
As CryptoGlobe reported, late last month McGlone revealed he believes the price of $ETH could outperform that of $BTC and of equities as demand for the second-largest cryptocurrency keeps on growing.
According to McGlone, Ethereum has built a strong foundation over the last few months even amid a wider market crash that has seen the Federal Reserve’s “most aggressive tightening in about 40 years,” which pressured most risk assets. Per the analyst, Ethereum “appears at a discount within an enduring bull market.”
The analyst added Ethereum may outperform the flagship cryptocurrency and stocks in the future as demand for it keeps on rising, with growing stablecoin adoption seeing Ethereum’s use case as an on-ramp that “facilitates greenbacks transacting 24/7, with instant settlement and earning interest above eurodollars” growing.
It’s worth noting that over the past 30 days, $ETH has significantly outperformed $BTC.
Earlier this year, the analyst predicted that Bitcoin was likely to keep on outperforming gold and the stock market. McGlone has notably accurately predicted in November 2020 that the price of BTC would surpass its $20,000 mark and enter a parabolic rally in 2021. Last year, BTC reached a new all-time high near the $69,0000 mark before enduring a significant correction.
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