Ethereum (ETH) Is Back in the Spotlight After a Sharp Statement from Vivek Raman, a Former Wall Street Banker

(ETH) is back in the spotlight after a sharp statement from Vivek Raman, a former Wall Street banker

Jakarta, Pintu News – Entering the Accelerate 2025 conference, Vivek Raman, former Wall Street banker and now co-founder of Etherealize, a startup focused on expanding institutional adoption of Ethereum, made a sharp statement.

According to Vivek, as the crypto ecosystem grows, it will not only be desirable-but necessary-for institutions to hold ETH as a strategic asset. In their vision, Ethereum will become the global foundation for transactions, just like oil has been the foundation of various industries, which is why it is being called “digital oil.”

But why is Ethereum being called ‘digital oil’ and what is the strategic value that institutions are missing?

During the interview with Pintu, Vivek explained that in the macroeconomic context, we can view bitcoin as ‘digital gold’ and ethereum as ‘digital oil.’

As we know, bitcoin is an asset with limited supply (maximum 21 million coins) and high demand, making it suitable as a store of value, similar to how gold has traditionally been used. This similarity in economic attributes has led people to call bitcoin ‘digital gold.’

However, ethereum has different economic dynamics. While it also has no fixed supply limit, its issuance rate is capped at a maximum of 1.5% per year and some ETH is burned through transaction fees, which makes its supply tend to decrease.

This minimal and capped issuance, combined with the burning mechanism, makes ethereum act like an asset with limited supply in the long term.

Moreover, in the future of finance, we will see more and more assets, such as stocks and bonds, being brought onto the blockchain through tokenization, which is something that financial institutions are preparing for.

With more and more assets being represented on-chain, ethereum could be a top choice due to its stability, flexibility, and scalability. Some large institutions like BlackRock and Franklin Templeton have already launched tokenized financial products on top of the ethereum network.

On the other hand, crypto exchanges like Kraken have also started using alternative blockchains like Solana (SOL) for their own projects. However, Vivek believes that ethereum will remain the backbone for a neutral and global tokenization system.

The 'Digital Oil' Analogy

The interview also touched upon the analogy of ethereum as ‘digital oil,’ which was originally mentioned by Danny Ryan, the co-founder of Etherealize and former Ethereum Foundation researcher.

They agreed that the analogy has its limitations, as oil supply is elastic-it can be increased when demand rises. In contrast, ethereum has a fixed annual issuance limit, and due to the burning mechanism, could even become a deflationary asset.

In addition, ETH can provide yield through staking, with an estimated return of around 3% per year, unlike oil which does not produce any yield. This means that ethereum is not only used for blockchain operations, but can also be a productive asset for its owners.

As the world moves towards massive tokenization, there will be a need for a neutral asset that can bridge all networks and parties. In this scenario, ethereum (ETH) has the potential to become the ‘reserve currency’ of the crypto world due to its nature of not being tied to any particular country or institution.

According to Vivek, ETH could become the main trading partner in the future for various digital assets issued by different institutions. In other words, if the whole world tokenizes its assets, ETH will be the main link between all those ecosystems. And in Etherealize’s vision, this is the strategic value of ethereum that many traditional institutions have yet to realize.

That’s the latest information about crypto. Follow us on Google News to stay up-to-date on the world of crypto and blockchain technology.

Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app via Google Play Store or App Store now. Also, experience web trading with advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro. Pintu Pro Futures is also available, where you can buy bitcoin leverage, trade btc futures, eth futures and sol futures easily from your desktop!

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.