Mark Cuban, the billionaire from Shark Tank, Is Bullish on Ethereum
Mark Cuban, a Shark Tank investor, and billionaire predict that Ethereum (ETH), the top smart contract platform, will increase in the near future as a result of significant advances.
The business mogul discloses in a recent interview with Fortune that he is “very enthusiastic” about Ethereum ahead of its forthcoming merging, which will see it go from a proof-of-work to a proof-of-stake system.
At the moment, Ethereum operates on a proof-of-work method, which requires a significant amount of computational power to verify transactions and mine ETH.
However, the forthcoming merger would convert the second-largest cryptocurrency asset by market capitalization to a proof-of-stake system called the Beacon Chain, which verifies transactions based on the number of tokens pledged by a miner. The transition will eventually render Ethereum’s proof-of-work mining useless.
According to The Ethereum Foundation, the switch will result in a 99 percent reduction in Ethereum’s energy production.
Cuban adds that another reason to be positive about ETH is that the absence of mining would result in the coin’s total supply dwindling, hence increasing its price. He thinks that the merger would result in a decrease in the number of ETH created, transforming Ethereum into a deflationary asset.
Cuban, a long-time crypto bull, told Fortune that he owns Ethereum, Ethereum-based non-fungible tokens (NFTs), and has invested in firms that want to build on or expand the main cryptocurrency. At the time of writing, Ethereum is trading at $3,245 per coin, down 6% on the day.