11 February 2021 · 1 min read

Lyn Alden & Raoul Pal: Is Ethereum a Good Investment?

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. They are interview by Laura Shin of Unchained podcsat.

In this episode, they also discuss:

0:00 - Intro
1:25 - Why Raoul views ether as similar to bitcoin at a macro level
5:06 - Why Lyn decided ETH was not currently investable
6:55 - An analysis of utility protocols (John Pfeffer’s paper)
9:31 - Counterarguments to John Pfeffer’s paper
11:22 - How to allocate between BTC and ETH
11:47 - Why Raoul also invested in other coins beyond BTC and ETH
13:35 - Whether Metcalfe's law applies equally to all kinds of networks
15:09 - Why Lyn views Ethereum’s use case as circular, and why that makes it less investable
21:20 - Whether Ethereum 2.0 and Ethereum Improvement Proposal 1559, and whether that could make ETH more investable
23:36 - The impact of fees on the value of Ethereum
25:22 - Raoul's views on what S-Curves and the Lindy Effect indicate about the development of a currency
27:06 - How high fees make DApps less attractive, while low fees potentially decrease demand for ETH
33:10 - 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
36:32 - How the regulators are behind innovation in cryptocurrencies, particularly around taxation
41:45 - Raoul's and Lyn's predictions for the ETH price by end of 2021
45:32 - What GameStop says about the democratization of financial information
49:03 - Whether smart contracts could play in preventing situations similar to what happened with GameStop and/or Robinhood
54:03 - How blockchain technology could be used to prevent a situation in which the hedge funds could short more shares than existed
54:53 - How the GameStop/Robinhood saga is a giant advertisement for self-custody
56:53 - Whether r/WallStreetBets' behavior was market manipulation or not

The episode was published on February 9, 2021.