Billionaire Mark Cuban stated that Ethereum is the best way to preserve capital compared to Bitcoin. During the release of the podcast Unchained, Cuban noted his recognition of the versatility of the ETH network, which will ultimately make the coin more attractive to the mainstream cryptocurrency in the eyes of investors.
At the same time, BTC, according to the billionaire, so far cannot offer anything other than its popularity and the usual conduct of transactions. Let’s talk about the situation in more detail.
To begin with, let us remind you that this is not the first time the billionaire has supported Ethereum. In addition, Mark is actively investing in cryptocurrencies on this blockchain. We checked the actual data: there are tokens worth more than a million dollars on the well-known Cuban address.
288 thousand dollars of them are in AAVE, and 234 thousand are in Serum. It is also worth noting the presence of the Matic token for the equivalent of $ 121,000.
That is, Cuban supports the revolution of decentralized finance based on the Ethereum network, not only in theory, but also in practice. With this in mind, it should come as no surprise that an investor can gauge the prospects for ETH and spot Bitcoin’s shortcomings.
Should you choose Bitcoin or Ethereum?
Mark admits that there is a big difference between the cryptocurrencies he mentioned. Here is his remark, in which the investor shares his attitude to the named networks. The replica is given by CryptoSlate.
There are significant differences between them. Both cryptocurrencies are essentially platforms that allow many ideas to be realized. But now Bitcoin has become primarily a store of value, and it is very difficult to use it for anything else.
Indeed, the Bitcoin network is currently only suitable for making transfers. It also supports a second-tier solution called the Lightning Network, which makes transactions fast and cheap, but few use it. In addition, the smart contracts that the BTC blockchain still supports are limited in their capabilities and have not become widely popular. An example of such a digital agreement in Bitcoin is multi-signature wallets, which require the consent of two or more people to access funds.
At the same time, Ethereum has significantly more applications. The ETH network has become home to a host of other tokens, the decentralized finance niche and NFT tokens that are trending today. Therefore, we agree with Mark Cuban’s argument.
Here is a conversation with a billionaire in the original. We recommend that you look if you understand English by ear.
While Bitcoin’s market cap is currently nearly five times the market cap of Ethereum, this does not necessarily mean that BTC is five times better than ETH. According to Cuban, the reason for the superiority of ETH in his eyes lies in the lower utility of Bitcoin. That is, the billionaire is confused by the lack of popular smart contracts on the BTC network. The expert continues.
There are many more built-in properties in the organic and native form of Ethereum. Simply being able to use smart contracts initially is a significant difference and advantage right now.
According to Cuban, in the end, Ethereum may even serve as a better store of value, thanks to the upcoming launch of Ethereum 2.0 and the integration of EIP 1559.
Recall that the launch of the EIP-1559 upgrade is scheduled for July this year as part of the London hard fork. The improvement will overhaul the ETH transaction fees system, replacing the auction model with a floating standard rate mechanism that moves according to network load. It is assumed that with the help of EIP 1559 it will be possible to significantly reduce fees on the Ethereum network and make it more convenient to use. Read more about the details of the update in a separate article.
Another plus in Ethereum’s piggy bank is the hype around the sphere of unique NFT tokens, most of which are created on the basis of the ETH network. A vivid confirmation of this was the recent broadcast of the show Saturday Night Live, in which a sketch on the topic of NFT was demonstrated. Here is the original video.
After some time, it was put up for sale as a unique token, and the buyer was found almost immediately. As a result, the token was bought for 171.99 ETH or 365 thousand dollars, Decrypt reports.
The logic of the «usefulness» of the popularity of NFT for Ethereum is simple — most of these tokens are bought and sold for ETH, that is, to join the trend, a novice investor first needs to buy ETH. As the HYIP grows, the number of buyers increases, which has a beneficial effect on the price of the altcoin. And this is superimposed on an already bull market that is driving up cryptocurrency prices.
We believe that Mark Cuban’s point of view reflects soberly what is happening in the industry. The possibilities of the Ethereum network are indeed much wider than Bitcoin — and this is noticeable in the activity of investors. They are busy creating and buying unique NFT tokens, as well as exploring new projects from the decentralized finance niche. All this is offered by the ETH network, which is still the most popular blockchain for this.
At the same time, BTC is still the most well-known cryptocurrency. It is heard even by those people who are not associated with the blockchain industry, so usually acquaintance with a niche begins with him. However, the situation may change in the future.