Mark Cuban, the billionaire best known for the reality TV series Shark Tank, has changed his mind about Bitcoin and cryptocurrencies in the past few months.
Cubans made headlines when he said he would “prefer bananas to Bitcoin” and called crypto “too complicated”. But the owner of Dallas Mavericks has now moved on to cryptocurrencies and praises the emerging DeFi (decentralized finance) area, which is largely based on the second largest cryptocurrency after Bitcoin, Ethereum.
Now that the market price of Bitcoin and cryptocurrency rises above $ 2 trillion, Cuban has announced that it expects Ethereum’s long-awaited 2.0 upgrade to trigger the development of apps that “dwarf” Bitcoin .
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 in her “Unchained” podcast.
“Bitcoin has become a primary business asset 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 last 12 months and has soared as high-profile billionaires like Elon Musk and Jack Dorsey support it, Wall Street giants launch Bitcoin services, and investors fear inflation may be around that Undermine the value of traditional currencies.
However, the massive Bitcoin price rally has been dwarfed by Ethereum (and a handful of smaller cryptocurrencies), with Ethereum price rising 1,100% since April 2020.
Cuban believes that upgrades for Ethereum, which are not expected to be completed before at least 2022, “will give some people a reason to use Ethereum as a store of value over Bitcoin”.
Bitcoin price has surged nearly 700% in the past year as investors fret about inflation … [+]
Last year ethereum started implementing its major 2.0 upgrade to improve scalability and security. The Ethereum network will transition from Bitcoin’s Proof-of-Work consensus algorithm (PoW) to the Proof-of-Stake (PoS) algorithm.
This essentially means that those who receive Ethereum’s Ether tokens as a reward for maintaining the network will be removed from the process in order to streamline transactions. Instead, Ethereum users can deposit their tokens to keep the network secure and earn rewards instead.
“With the proof-of-stake, you can achieve a multiple, significantly higher multiple, in transactions per second, which improves utilization and the possibilities for creating Ethereum,” Cuban told Shin. Recalling the latest cryptocurrency craze for NFTs (non-fungible tokens) as “just proof of concepts” 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,” the Cuban said, adding that he won’t be selling his Bitcoin but that he will be “a lot more owns “” Ethereum as Bitcoin.