Shark Tank’s host Kevin O’Leary believes Ethereum will become “ultra-sound currency”
Investor Kevin O’Leary, known for being a star on the business TV show Shark Tank where he is called “Mr. Wonderful,” supports the idea that Ethereum’s recent EIP-1559 update may make Ethereum, the second largest cryptocurrency in the world, in “ultra solid currency”.
In a video posted on Cameo, a platform where users can pay influencers to create personalized videos, O’Leary talks about the potential benefits of Ethereum’s recent EIP-1559 update and its upcoming EIP-3675 updates. This is how Daily Hodl tells it, which accessed the paid video.
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EIP-1559 takes a portion of Ethereum’s transaction fees and burns them instead of distributing them to miners. EIP-3675 changes Ethereum from proof of work (POW) to proof of stake (POS).
O’Leary reads a script that highlights the potential impacts of these two key updates.
“When you combine [EIP-1559] with EIP-3675, which switches the network to proof-of-stake and is coming in a few months, Ethereum will become deflationary. This means the number of coins in existence will begin to decrease. If Bitcoin is sound money because of the 21 million coin supply ceiling, Ethereum enjoys the same benefit now. It’s ultra sound money because there’s no supply floor and at that point. Ethereum will be thought of like a traditional business and can be analyzed like one, sort of like using a cash flow model.”
The Shark Tank billionaire previously revealed that he owns a small amount of ETH and he’s betting big on the decentralized finance (DeFi) space.