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Ethereum

The KOL Coin Bureau believes ETH can go up to $ 20,000, here’s why?

June 30, 2021 - Around 2 mins mins to read

A prominent analyst with the Coin Bureau believes Ethereum has the potential to surpass $ 20,000 if backed by an emerging sector of the crypto market.

In one Video Newly analyst Guy says decentralized finance (DeFi) and the ability to replicate the services of traditional finance will be the catalyst driving Ethereum to the moon.

Guy told his 1.13 million YouTube subscribers that traditional finance was “completely interchangeable”.

“Unsurprisingly, banks have done pretty badly over the past decade. From the banks of the United States to China, Japan and Europe, a poor performer from what was once a top industry. Imagine this is the area that caused the 2008 financial crisis. They have improved their skills in privatizing profits and socializing losses. However, they still cannot infer any value for their shareholders … ..

So the question is: Can the services of these banks be replicated in DeFi? “

To answer that question, guy shown an article written in April by Arthur Hayes, the former CEO of the derivatives exchange BitMEX.

In his essay, Hayes explains how DeFi can easily duplicate a savings account. Checking account and fiduciary services. However, he noted that while DeFi can lend, the sector is over-collateralized, which means that banks, despite their shortcomings, tend to outperform lending.

However, Hayes noted that if Ethereum can bring in some percentage of the five-year median profit from banks and the big four accounting firms, it will skyrocket its value.

Based on Hayes’ equations, if the Ethereum ecosystem accounts for 0.5% of traditional finance revenue, its value will increase tenfold to over $ 20,000. Taking 5% of traditional finance industry revenue would bring them to $ 200,000.

Guy claims that it is a reasonable expectation for DeFi to generate 0.5% of its revenue from traditional finance.

Guy explained

“This concept is why institutional investors support it. That thought is why Goldman went into options [Ethereum] before you offer them on Bitcoin. Of course, a lot depends on the upcoming updates. Driving such fundamental upgrades will be no easy task on a network valued at more than $ 300 billion. But they are necessary. “

SN_Nour

According to Dailyhodl

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Ethereum

The KOL Coin Bureau believes ETH can go up to $ 20,000, here’s why?

A prominent analyst with the Coin Bureau believes Ethereum has the potential to surpass $ 20,000 if backed by an emerging sector of the crypto market.

In one Video Newly analyst Guy says decentralized finance (DeFi) and the ability to replicate the services of traditional finance will be the catalyst driving Ethereum to the moon.

Guy told his 1.13 million YouTube subscribers that traditional finance was “completely interchangeable”.

“Unsurprisingly, banks have done pretty badly over the past decade. From the banks of the United States to China, Japan and Europe, a poor performer from what was once a top industry. Imagine this is the area that caused the 2008 financial crisis. They have improved their skills in privatizing profits and socializing losses. However, they still cannot infer any value for their shareholders … ..

So the question is: Can the services of these banks be replicated in DeFi? “

To answer that question, guy shown an article written in April by Arthur Hayes, the former CEO of the derivatives exchange BitMEX.

In his essay, Hayes explains how DeFi can easily duplicate a savings account. Checking account and fiduciary services. However, he noted that while DeFi can lend, the sector is over-collateralized, which means that banks, despite their shortcomings, tend to outperform lending.

However, Hayes noted that if Ethereum can bring in some percentage of the five-year median profit from banks and the big four accounting firms, it will skyrocket its value.

Based on Hayes’ equations, if the Ethereum ecosystem accounts for 0.5% of traditional finance revenue, its value will increase tenfold to over $ 20,000. Taking 5% of traditional finance industry revenue would bring them to $ 200,000.

Guy claims that it is a reasonable expectation for DeFi to generate 0.5% of its revenue from traditional finance.

Guy explained

“This concept is why institutional investors support it. That thought is why Goldman went into options [Ethereum] before you offer them on Bitcoin. Of course, a lot depends on the upcoming updates. Driving such fundamental upgrades will be no easy task on a network valued at more than $ 300 billion. But they are necessary. “

SN_Nour

According to Dailyhodl

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

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