Despite having the market capitalization behind Bitcoin, Ethereum increasingly demonstrates its potential. Last week, the Ether continued to peak, now at $ 3,900 and is expected to increase in the future.
Billionaire Mark Cuban is an American businessman at the forefront of the wave of crypto investment and blockchain technology. He has a portfolio of Bitcoin, Ether, and many other altcoins. But when comparing the two largest cryptocurrencies in the world, he stated: “The number of transactions and the variety of transaction types, as well as the development effort of Ethereum outweigh Bitcoin. The ability to utilize Ethereum is much higher.”
He gave three reasons why Ethereum could make a break out in the future. First, the Ethereum blockchain processes more transactions than Bitcoin, so payments are faster and more efficient.
Second, the Ethereum network supports the building of many applications. Ethereum is famous for its smart contracts that power decentralized applications like DeFi (decentralized finance) or NFT (unique token).
He added: “Currently, Bitcoin is a more solid store of value, it will last a long time. On the other hand, Ethereum is exploding with a lot of potential and I think Ethereum will create a lot new application”.
Third, Mark Cuban said that the Ethereum 2.0 upgrade phase is approaching, making “the impact of Ethereum possibly greater than we imagined”.
Investors all agree Ethereum 2.0 will have many new utilities. For example, the upgrade will make the Ethereum network faster and more secure, able to process thousands of transactions per second on the blockchain.
However, if you see Ethereum as an investment channel, the only challenge is that Ethereum is incomplete, so it is difficult to predict which improvements will come true. This will “create a lot of confusion in the investment process,” said Mark Cuban.
Despite being optimistic about Ethereum and Bitcoin, Mark Cuban also noted that newly emerged cryptocurrencies could break the status quo at any moment.
He said: “Just like the big tech firms are at risk of being replaced by new technologies, Bitcoin and Ethereum can also be thwarted by a better decentralized blockchain.”
Billionaire investor Ray Dalio, the founder of hedge fund Bridgewater Associates, gave the same opinion as Mark Cuban in an article titled “What do I think about Bitcoin”. “I believe there will be a better alternative that will surpass Bitcoin, because that’s the evolution of things,” said the person.
According to Mark Cuban, it is “less likely, but always possible”.