Shark Tank investor and billionaire Mark Cuban is predicting that leading smart contract platform Ethereum (ETH) will surge on the back of big developments in the near future.
In a new interview with Fortune, the business magnate reveals that he’s “very bullish” on Ethereum because of its upcoming merge, which will see it switch from a proof-of-work system to a proof-of-stake one.
Currently, Ethereum uses a proof-of-work system, which uses large amounts of computing power in order to validate transactions and mine ETH.
However, the upcoming merger will switch the second-largest crypto asset by market to a proof-of-stake system known as the Beacon Chain, which validates transactions according to how many tokens a miner has staked. The switch will ultimately make proof-of-work mining on Ethereum obsolete.
According to The Ethereum Foundation, the shift will cut Ethereum’s energy output by 99%.
Cuban says another reason to be bullish on ETH is that the lack of mining will cause its overall coin supply to dwindle, pushing up its price. He predicts that the lower amount of ETH issued after the merger will turn Ethereum into a deflationary asset.
A long-time crypto bull, Cuban mentioned to Fortune that he owns Ethereum itself, Ethereum-based non-fungible tokens (NFTs), and has invested in companies looking to build upon or scale the leading altcoin.
Ethereum is exchanging hands at $3,245 at time of writing, a 6% drop on the day.
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Roman3dArt
Credit: Source link
