This week, Brian Kelly, founder and CEO of digital currency-focused investment firm BKCM LLC, said at CNBC’s “Fast Money” that he believes Ethereum is a better investment than Bitcoin.
Hosted by Melissa Lee and a roundtable of top traders, “Fast Money” is a financial program by CNBC, focusing on actionable news that matters most to investors. Brian Kelly, often introduced by Melissa Lee as “Crypto baller”, is a familiar face within the crypto space and is a regular guest on the show.
This week, Brian Kelly said during the show that he believes Ethereum might be a better investment than Bitcoin — and he provided three reasons why:
– Ethereum futures
– Software mining
1. Ethereum futures
Now that the U.S. Securities and Exchange Commission (SEC) has officially decided that Ethereum is not a security, Kelly believes Ethereum futures may be around the corner. The decision from the SEC opens the door for institutional investors to start investing in Ethereum and will also bring Ethereum a step closer to Ethereum futures.
*CBOE SAYS SEC’S COMMENTS REMOVES OBSTACLE TO ETHER FUTURES
— Brian Kelly (@BKBrianKelly) June 14, 2018
Next to the Ethereum futures, Brian Kelly believes that the platform Augur is another primary reasons why Ethereum could see accelerated growth when compared to Bitcoin.
Augur is a prediction market platform, that rewards you for correctly predicting certain world events. It’s a gambling application built on the blockchain and allows you to bet on who will win a sporting event, an election, a grammy or any sort of event in the future. Augur is set to fully launch in July.
Brian Kelly said:
“It’s a decentralized prediction market. What’s interesting about this [is that] this will probably be one of the biggest decentralized apps on top of Ethereum. If [augur] doesn’t slow the system down, that can generally be a positive for Ethereum.”
3. Software mining
Finally, Brian Kelly sees Ethereum’s eventual upgrade from hardware mining to software mining as a driving factor for the cryptocurrency’s continued growth. With the upgrade, Ethereum will go from ‘Proof of Work’ to ‘Proof of Stake’.
“They [will] go from hardware mining, proof of work, to something called ‘proof of stake’, which is similar to a software mining.”
With Proof of Work, the person who performs the most work in verifying transactions gets the reward (in the form of cryptocurrency). With Proof of Stake, however, there is no reward for creating a block. The person with the largest ‘stake’ (wealth) is the person who is allowed to create the new block. This person receives a fee for processing the transactions on the blockchain.
The advantage of Proof of Stake is that no useless calculations need to be made to create a block. This prevents a lot of waste of energy and also ensures that a cryptocurrency will become a lot more cost efficient.
Source: Altcoin Buzz News
Original Post: Crypto ‘baller’ Brian Kelly: “Ethereum a better investment than Bitcoin”