Soon

• Mr. Wonderful is a major investor and co-host of “Shark Tank.”
• It started supporting Bitcoin earlier this year.
• He believes that EIP-1559 will be great for Ethereum.

Kevin O’Leary, the Canadian investor best known for his role as “Mr. Wonderful ”on the reality show“ Shark Tank, ”took a 180-degree turn to cryptocurrencies this year.

It is now driving straight into Ethereum after the network update in London last week, which began to create deflationary pressure on the price of ETH.

“If Bitcoin is solid money due to the supply limit of 21 million coins, Ethereum now enjoys the same advantage,” said O’Leary. viewers on Cameo, an app to pay celebrities to shoot short videos. “It’s ultrasound money because there is no bidding plan,” O’Leary said, in what amounts to a paid advertisement for ETH.

O’Leary was referring to the effect of EIP-1559, a code change within the London hard fork last Thursday that changed the network’s rate structure. Instead of paying commissions to the miners, they now go back to the grid and are then burned or permanently removed from circulation. With the growth rate of ETH supply declining, more than 18,600 ETH ($ 59 million) has been burned as of Thursday, the price has increased by 21% in seven days.

Shark likened it to a business that becomes profitable, with more income than expenses. Burning the profits, he suggested, is equivalent to giving a stock dividend to shareholders.

Like other major investors, O’Leary has publicly changed his stance on Bitcoin as the cryptocurrency’s market capitalization increased in the second half of 2020 and peaked in early 2021. On the record as BTC he called ‘ hot junk ‘in 2019, has moved to March to an investment strategy that involved placing 3% in Bitcoin and Ethereum.

Read also Real Estate vs Crypto: Which is more profitable?

Wonderful co-star Dallas Mavericks owner Mark Cuban is also a huge Ethereum supporter. In April, he told podcast host Laura Shin: “Of course, with EIP 1559, everything changes. What happens in the future will really affect how people perceive it specifically as a store of value. Cuban was saying more broadly that Ethereum already has utility, given NFT and Red smart contracts; EIP-1559 reinforces its use as a store of value.

Some outside of the traditional investing world were quick to point out that the effects of EIP-1559 are still being tested.

“I think EIP-1559 is pretty good, but anyone who predicts ETH supply from EIP-1559 will be wrong, either way,” former Zcash CEO Josh Cincinnati tweeted.

Realtalk I think EIP-1559 is pretty good, but anyone who predicts ETH supply thanks to EIP-1559 will be wrong, either way.

– Josh Cincinnati (@acityinohio) August 8, 2021

” uncertainty surrounding the hard fork in general is probably putting downward pressure on the market right now,” said Taylor Monahan, CEO of wallet provider MyCrypto. decrypt before EIP-1559 last week. This is due in part to the fact that network developers have not finished innovating; the blockchain is changing the consensus mechanisms in the coming months. “If the hard fork occurs and everyone thrives, that pressure should decrease in the weeks after the fork. Until people start thinking about ETH2 or whatever scary thing comes next.

Read also What has changed in the cryptocurrency markets while I slept – July 30

Source link

more