Billionaire investor Mark Cuban has revealed two reasons why he believes Ethereum’s highly anticipated ETH/USD Merge event will be important this summer.
What happened: “I’m very optimistic,” Cuban said in an interview with Fortune on Tuesday.
The Merge refers to when Ethereum’s main chain will merge with the Beacon Chain and the network will officially shift from a proof-of-work (PoW) blockchain to a proof-of-stake (PoS) blockchain.
Cuban, who has proclaimed himself “Ethereum Maxi”, considers the Merge important for two main reasons.
The first is the transition of the network to PoS, which could significantly reduce environmental impact as PoW mining has been subject to scrutiny by several industry watchers.
The energy consumption involved in crypto mining activities was cited as the main reason why Tesla Inc TSLA reversed its decision to accept Bitcoin BTC/USD as payment.
The transition from Ethereum to PoS could potentially reduce Ethereum’s power consumption by 99%.
The second reason is the change in Ethereum issuance after the merger. Cuban said he was particularly interested in how the lower amount of ETH issued may make the asset deflationary.
Last month, analysts estimated that the move to PoS is expected to cut Ethereum’s issuance rate by about 90%.
Cuban is not the only “Ethereum Maxi” optimistic about the outlook for the second-largest cryptocurrency after the merger. Evidence shows that long-term ETH holders added $12 billion to ETH as the price fell in January, fueled by growing interest in the merger.
Price Action: According to data from Benzinga Pro, ETH has been trading at $3,341 for the past 24 hours, down 4.90%.
Photo by Gage Skidmore on Wikimedia
This post Mark Cuban Is Very Optimistic About Ethereum Merge Event was original published at “https://www.benzinga.com/markets/cryptocurrency/22/04/26491655/mark-cuban-is-very-bullish-on-ethereum-merge-for-these-two-reasons”