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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

How Ethereum has outperformed Bitcoin by 250% since inception

Reynaldo Marquez
Reynaldo Marquez
4 years ago
2 mins read
Ethereum ETH Bitcoin BTC

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With a 3,7% loss in the last week and 2.7% in the last hour, Bitcoin’s price sits near critical support. On the other hand, Ethereum managed to climb to a new all-time high and sits on top of two fast-growing sectors: DeFi and NFTs.

Former Goldman Sachs Executive Raoul Pal has shown data to demonstrate that throughout its history, Ethereum has outperformed Bitcoin by 250% in the trading pair ETH/BTC. According to Pal, the cryptocurrency “only fell” against BTC 5 months after its inception on August 6th, 2015. He added:

Let that put rest to the idea that all other tokens trend towards zero in BTC terms.

Ethereum ETH Bitcoin BTC
Source: Coingecko

Ethereum’s network effect impacts its price

According to Pal, the only tokens that trend down when compared to Bitcoin are those unable to “get network effect”. Former Goldman Sachs executive claimed:

Tokens that fail to get network effects trend lower, tokens that achieve ecosystem network effects (active wallets + developers + apps) will likely rise in BTC terms over time.

Therefore, he recommended investors keep a “basket” of cryptocurrencies. However, for Pal, there is “no science and zero value” when choosing a cryptocurrency to add to its portfolio. He revealed his basket is composed of 10 cryptocurrencies but failed to mention any by name.

Previously, Pal made a bullish case for Bitcoin as a store of value due to a “talk from the IMF (and the U.S.) of a new Bretton Woods” system. Established after World War II, the Breston Wood payment system set the rules for international trading and financial relationships for decades.

Current U.S. Secretary of Treasury Janet Yellen expressed her desire to “worked” with their allies to dictate what Pal thinks is a “global fiscal initiative” and keep the USD strong. In return, many currencies could face debasement.

Predicting a “big change upon us”, former Goldman Sachs executive believes investing in technology and Bitcoin will work as a “life raft”. Pal added:

Debasement is the enemy, and an overhaul of the global economy is the prize. It’s a fine line. We can hedge the risk with Bitcoin. global growth could be unexpected prize as stimulus drives economies to modernise, digitise and re-tool for the future. It is possible but far from certain. But I think the bet of BTC + Technology investing (including digital assets) will be the best way to prosper.

At the time of writing, BTC trades at $56.187. On the other hand, ETH trades at $1992,73, over the past year this cryptocurrency shows gains of over 1.073%.

Ethereum ETH Bitcoin BTC
ETH with small losses in the 24-hour chart. Source: ETH/USD Tradingview
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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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