09.12.2021

Early Uber Investor Impressed by Ethereum’s Potential and Considers Bitcoin Better than Bitcoin

According to large investor Bill Gurley, the pragmatism of the Ethereum community and its openness to change have become the main factors for personal investment in cryptocurrency. Recall that Gurley is one of the first investors in Uber, who invested $ 11 million in a startup back in 2011.

Over the years, the company’s capitalization has grown to $ 76.5 billion, which is why it was one of Bill’s most successful bets in the field of investment. In addition, he is the main partner of Benchmark, an American venture capital firm based in Silicon Valley.

Note that Ethereum is now in the field of vision of many investors. The reason for this is a recent update to the network called London, which introduced a procedure for burning ETH paid by blockchain users as fees.

Thanks to this, large volumes of coins are now being destroyed in the cryptocurrency network, which has significantly reduced the rate of ETH issuance. At the current rate per year, 1.9 million native tokens will be destroyed in the Ethereum network, while their release will be approximately 5.3 million units. Thus, the annual growth rate of ETH in circulation will be 2.9 percent.

burning cryptocurrency ethereum

Emission indicators in the Ethereum network, taking into account the burning procedure

This week, a new record was set on the network: during the day Eth burned 6707 coins, that is, the equivalent of $ 21.26 million.

ether cryptocurrency burning

The volume of destroyed ethers during the day

This means that the asset becomes more rare than it was before. And it attracts the attention of professional investors.

What cryptocurrencies are investors buying?

In a recent interview, Gurley admitted that he is very inspired by the ideals of the Ethereum community. Here is a quote in which an investor shared his attitude to what is happening. The cue is from Decrypt.

I must say that I was influenced by the arguments of Ethereum fans, and I took a personal position on the asset, which is different from the beliefs prevailing in Benchmark.

That is, he made it clear that the investor’s colleagues have not yet had time to appreciate the advantages of the main cryptocurrency in the world in terms of market capitalization after Bitcoin and treat it with restraint. Accordingly, Girlie has a chance to repeat his success with Uber when he saw the project’s potential ahead of most professional investors.

As a reminder, the Ethereum network has been operating since 2015. And although six years is a decent period for the existence of the project, in the case of the cryptocurrency industry, it is still at an early stage of development. A small number of people managed to grasp the essence of digital assets, which means that mass adoption of the technology is still only in the plans.

Bill Gurley cryptocurrency investor

Venture Investor Bill Gurley

The investor noted that he joined the crypto race “ relatively late”, since before that he had many other things to do and did not pay much attention to the development of the crypto market. That all changed dramatically in April, however, when Gurley spent “considerable time lecturing and studying,” during which he developed a strong interest in ETH. The expert continues.

I was captivated by a crowd of Ethereum fans. Its participants seem to be more pragmatic, they are open to changes and they themselves implement them. We are talking about reducing fees and other innovations that will become very useful for the cryptocurrency ecosystem in the future. Many developers are clearly paying attention to Ether.

Ethereum blockchain hardfork

Amount of ETH burned since London integration

Indeed, the project is now in preparation for an active transition to the Proof-of-Stake consensus mechanism, which will make the cryptocurrency more sustainable and faster. At the same time, an update was introduced in the recent London hard fork that burns a certain amount of ETH as a commission in each block, which can lead to deflation of coins. In other words, in the future, a scenario is possible when the amount of ETH in circulation will gradually decrease.

Judging by the following quote, Gurley himself is confident that all of the aforementioned upgrades will give Ether an edge over Bitcoin in the eyes of investors.

I think that in terms of environmental, social and corporate governance changes, Ethereum will gain an edge over Bitcoin if it moves to Proof-of-Stake. It seems to me that investing in Ethereum now is the smartest way to make money on bullran.

Note that all investment decisions must be made independently after conducting their own research. Accordingly, you should not blindly trust Gurley’s comments – even in spite of his other merits.

We believe that the prospects for the development of Ethereum are indeed greater than those of BTC. The technical characteristics of Bitcoin and serious restrictions in the form of 7 transactions per second do not allow the blockchain to rapidly develop and be applied in new areas such as decentralized finance, NFT and other trends. At the same time, the Eth network has already become home to the named niches. Therefore, in the future, its popularity will surely continue to grow – including among investors.

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