Billionaire Mark Cuban reveals why he believes Ethereum will dwarf Bitcoin when the crypto market price hits $ 2 trillion
Mark Cuban, the billionaire made famous by the reality TV series Shark Tank, has changed his mind about Bitcoin and cryptocurrencies in recent months.
Cubans made headlines when he said he would “prefer bananas to Bitcoin” and called crypto “too complicated”. But the owner of the Dallas Mavericks has since moved into cryptocurrencies, praising the nascent decentralized finance (DeFi) space, which is largely built on the second largest cryptocurrency after Bitcoin, Ethereum.
Now that the market price of bitcoins and cryptocurrencies rises above $ 2 trillion, Cuban has announced that it expects Ethereum’s long-awaited 2.0 upgrade to trigger the development of apps that make Bitcoin “dwarfed”.
Dallas Mavericks owner Mark Cuban has recently changed his mind about bitcoin and cryptocurrencies … [+]
“I think the applications that use smart contracts and extensions for Ethereum will put Bitcoin in the shade,” the Cuban told journalist Laura Shin on her Unchained podcast.
“Bitcoin has primarily evolved into a store value right now, and it’s very difficult to use it for anything else … you really have to work a lot harder on Bitcoin than on Ethereum.”
Bitcoin price has risen around 700% in the past 12 months and has soared as high-profile billionaires Elon Musk and Jack Dorsey give it their support, Wall Street giants launch bitcoin services, and investors fear inflation is in danger could undermine the value of traditional currencies.
However, the huge Bitcoin price rally has been dwarfed by Ethereum (and a handful of smaller cryptocurrencies), with Ethereum price rising a staggering 1,100% since April 2020.
Cuban expects that upcoming upgrades to Ethereum, which won’t be completed until at least 2022, will mean that it will “give some people a reason to use Ethereum as a store of value over Bitcoin”.
Bitcoin price has soared nearly 700% over the past year and has soared as investors resent inflation … [+]
Last year, Ethereum began implementing its major 2.0 upgrade designed to improve scalability and security, and will see the Ethereum network move from Bitcoin’s Proof-of-Work (PoW) consensus algorithm to Proof-of-Stake (PoS) algorithm changes.
This essentially means that those who receive Ethereum Ether tokens as a reward for maintaining the network are removed from the process in order to streamline how transactions are processed – with Ethereum users instead being able to deposit their tokens to the network and earn rewards instead.
“With a proof-of-stake, you will be able to have multiples, significantly higher multiples, of transactions per second, which improves the use and opportunities for creating Ethereum,” Cuban told Shin. and points to the latest cryptocurrency craze for NFTs (non-fungible tokens) as “just conceptual evidence” of what smart contracts can do.
“I think in a couple of years Ethereum and maybe two or three other blockchains will have their place and those will be the winners,” Cuban said, adding that he won’t be selling his bitcoins but that he “owns a lot more “. “Ethereum as Bitcoin.
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