After unexpectedly expressing his interest in cryptocurrencies, billionaire Mark Cuban also shared the view that in the future, Ethereum will have more potential than Bitcoin.
Mark Cuban, the billionaire investor best known for his hit reality show series Shark Tank, has changed his view of Bitcoin and cryptocurrency in recent months.
In the past, Mr. Cuban caught the attention of saying that he “would rather eat bananas than bitcoin”, and rated the cryptocurrency market as “too complicated”.
Recently, however, Dallas Mavericks owners have begun to turn to crypto investing. And praise the emerging decentralized financial (DeFi) space – largely built on the world’s second-largest cryptocurrency after bitcoin, Ethereum, according to Forbes.
Ethereum has a lot of potential to replace bitcoin?
Now, as the bitcoin and crypto market prices soar to more than $ 2 trillion, billionaire Cuban has revealed that he hopes ethereum’s long-awaited 2.0 upgrade will spur the development of Cryptocurrency other than Bitcoin.
“I think that the introduction of the application that makes good use of smart contracts as well as the development of the extension on ethereum will reduce the impact of bitcoin,”
“I think that the introduction of the application that makes good use of smart contracts as well as the development of the extension on ethereum will reduce the impact of bitcoin”, Mr. Cuban told journalist Laura Shin on the podcast Unchained.
“Up until now, bitcoin has mostly evolved towards becoming a store of asset and it’s very difficult to use it for other transactions. You’ll actually have to work harder on Bitcoin than on Ethereum”, he confirmed.
The price of bitcoin has risen about 700% in the past 12 months, rising to record highs as well-known billionaires like Elon Musk and Jack Dorsey expressed support.
The Wall Street giants are also launching more diverse bitcoin offerings, While the majority of investors are concerned that possible inflation devalues traditional currencies – the more they invest in storing bitcoins.
In practice, however, bitcoin’s price volatility has made many people forget that Ethereum or some of the smaller cryptocurrencies is showing impressive growth as well. The price of Ethereum has increased by 1,100% since April 2020.
Billionaire Cuban said he hopes that upcoming upgrades to ethereum that can be completed in 2022 will give people “reasons to use ethereum as a store of more value than bitcoin”.
In 2020, ethereum began implementing a major upgrade 2.0, designed to improve scalability and security. Thereby, users will soon see the ethereum network move from bitcoin’s proof of work (PoW) consensus algorithm to a proof of stake (PoS) algorithm.
This will essentially mean that those who receive ethereum’s ether tokens as a reward for maintaining the network are removed from the process in order to optimize the settlement of transactions. Instead, ethereum users can submit their tokens to secure the network and earn alternative rewards.
With the proof-of-stake algorithm, you will be able to have a multiple – significantly higher multiples in transactions per second, that will improve utilization and opportunities to generate on ethereum “, Mr. Cuban said, points out that the latest crypto craze for NFT (irreplaceable tokens) is “proof of concepts” for what smart contracts can do.
“In a few years, I think ethereum and maybe two or three other blockchains will claim their place and those will be the winners,” the billionaire said, asserting that he also doesn’t intend to sell his bitcoins but he will still spend money buying more ethereum because of its potential.