Wednesday, February 8, 2023

Billionaire Mark Cuban Explains Why Ethereum Is Bullish

US-based entrepreneur Mark Cuban says he is bullish on Ethereum, the second largest cryptocurrency by market capitalization. An upgrade to the associated blockchain will be released next month. This upgrade could significantly reduce the energy consumption of Ethereum. For this reason, Cuban believes that this is likely to drive the price of this cryptocurrency up.

However, Cuban has not given any predictions regarding its price. He believes that this blockchain is superior to the biggest cryptocurrency Bitcoin because of its greater utility. He now sees bitcoin as a store of value that competes with gold. It is estimated that the Total Value Locked (TVL) of the crypto segment Ethereum Its share is about 58 percent. The upgrade to Ethereum is being called a ‘merge’. The developers of Ethereum said that it could be launched on 15 September. The upgrade is being awaited for the Total Terminal Difficulty (TTD) to reach a certain level. TTD is the total difficulty required for the final block to be ready on this blockchain.

Recently, Goerli reached the final round of Merge testing on the test network. More than $100 billion of decentralized finance (DeFi) apps are supported on this blockchain, and because of this, the upgrade is being cautious. There have been hurdles in this project before. Ethereum miners have to use large server farms to order transactions on the blockchain, resulting in higher electricity consumption and increased carbon emissions.

It was estimated that the electricity usage of one Ethereum transaction is equivalent to 1,40,893 Visa credit card transactions. After this upgrade, orders for Ethereum transactions will be placed from stakers. This system is called Proof of Stake. There was a shortage of electricity in some countries due to crypto activities. To tackle this problem, China banned crypto mining last year. In some other countries, crypto mining is being opposed for the same reason.

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