I remember Raul Pal sharing an interesting observation about ETH/BTC a few years ago. A guy from Real Vision, who previously worked at Goldman Sachs, noted that the pair is quite indicative of current business cycles and market liquidity.

His main point was that Ethereum has maintained its value relative to Bitcoin since 2017, and if this trend continues, Ether could eventually turn the situation around. Raul Pal sees logic in this — Ethereum is not just a coin, it’s a whole platform with smart contracts, opening up a completely different target market than Bitcoin with its store of value function.

Pal’s reasoning sounds convincing: the economic activity happening within Ethereum will grow faster than just accumulating Bitcoin. And this could ultimately shift the ratio in favor of Ether if the value of smart contracts continues to increase.

Interestingly, Raul Pal isn’t just predicting the price but talking about a fundamental reassessment of roles. Bitcoin as a safe, Ethereum as an economy. If this is true, over time, the second should be worth more than the first. That’s his long-term perspective on the ratio between these two assets.