Investor Kevin O’ Leary says that Ethereum will always be No. 2 and bitcoin will always be the leading cryptocurrency. O’ Leary, the chairman of O’Shares ETFs, added that Bitcoin will always be gold while Ethereum will always be silver.
O’Leary sees Bitcoin as digital gold and a hedge against inflation and that it will continue to appreciate gradually. In March, O’Leary announced that he would be allocating 3 percent of his portfolio to Bitcoin. He decided on Canada, and other countries eased restrictions on institutions purchasing cryptocurrency.
“NOW, BITCOIN HITTING NEW HIGHS ALMOST EVERY WEEK IS PROVING THAT THERE ARE INTERESTS BEING BROUGHT OUT OF ALL KINDS OF INSTITUTIONS NOW TRYING TO FIGURE OUT: IS IT A CURRENCY? IS IT AN ASSET? IS IT A PROPERTY?”
O’Leary thinks that Ethereum will remain a form of tracking and payment system. However, many Ethereum supporters disagree with him; they argue that Ethereum is capable of more.
Ethereum is popular for its smart contracts; the contracts help build and power applications like DeFi (decentralized fiancé) apps and NFTs (nonfungible tokens).
These capabilities make investors like Mark Cuban excited about its future. Cuban believes that the intelligent contract makes Ethereum unique.
“WHAT REALLY CHANGED EVERYTHING WAS SMART CONTRACTS. THAT’S WHAT CHANGED THE GAME. THAT’S WHY ETHEREUM IS A LOT LIKE THE INTERNET, BECAUSE APPLICATIONS CAN BE BUILT ON IT.”
Cuban said that Ethereum is the crypto that is closer to an actual currency. O’Leary did not acknowledge that Ethereum can have an upside shift in Ethereum 2.0.
Ethereum 2.0 was launched in 2020 and has since then been rolling out. Investors see Ethereum 2.0 as a faster ether and can enable thousands of transactions per second on the blockchain. They are also more secure.
O’Leary sees Ethereum 2.0 as more efficient in energy consumption since it does not consume a lot during creation. But still, with that, O’Leary does not think Ethereum will ever overtake Bitcoin.
“BITCOIN WILL ALWAYS BE THE GOLD, ETHEREUM WILL ALWAYS BE THE SILVER. THERE’S SOMETHING ABOUT BEING FIRST THAT REALLY KEEPS YOU AHEAD IN A HORSE RACE LIKE THIS.”
However, experts still warn cryptocurrency investors of the risky and volatile market they are getting into. They still see it as susceptible to fraud and likely to be hurt by government regulations. Crypto investors are advised only to invest what they can afford to lose.