The Ethereum blockchain network and cryptocurrency Ether (ETH) have exploded with Bitcoin this year. Starting the new year at $ 737, Ether gained 176 percent in the first quarter and rose to $ 2152.
Leading names in the industry have a positive view on the long-term performance of Ether, which has gained value with the rapid rise of DeFi and NFT sectors. One of them, billionaire investor Mark Cuban, said there is a possibility that Ether, not Bitcoin, will be used as a store of value in the future.
Cuban, who also owns the NBA team Dallas Mavericks, explained why he thinks Ethereum would be preferred as a store of value during an interview with Unchained Podcast’s Laura Shin on April 6.
Cuban said that both Bitcoin and Ethereum are effective platforms that make many things possible, but there are some differences between the two. Stating that Bitcoin has evolved primarily to be a store of value and is difficult to use for anything else, Cuban explained that Ethereum has many uses:
“Ethereum itself has more uses as embedded. Even being able to use smart contracts organically is an important difference right now. There are second tiers that add value to Bitcoin, but you have to put a lot more effort into using them than Ethereum.”
Cuban stated that Ether was purchased for purposes such as buying NFT and using smart contracts beyond being a store of value. With all these uses and the ETH 2.0 update, the transition is expected to take a short time, Cuban thinks these factors will lead people to perceive Ether as a store of value.
The billionaire investor is not alone in the view that Ether will be a good store of value. Anthony Scaramucci, founder of global alternative investment company SkyBridge, was on April 5. During an interview on CNBC’s Squawk Box program He said that Ether is a permanent cryptocurrency and store of value:
“Ethereum has good fundamentals and will grow further. As an organization, we are currently focused on Bitcoin, but an Ethereum fund could also be launched in the future. NFTs and technology will make Ethereum a permanent cryptocurrency and store of value.”