Canadian investor Kevin O’Leary expressed his admiration for the recent EIP-1559 update which he considers the best of Ethereum so far. Last week, the Blockchain of that project applied a hard fork which can be considered historical for the entire cryptocurrency ecosystem.
Within all the remodeling that is being done in the Ethereum Blockchain network, the EIP-1559 update stands out. It is precisely to this that O’Leary, also known as “Mr. Wonderful »for his role in the reality show competitions “Shark tank».
For the investor, the burning of Ether becomes a very important step that adds great value to the current second most popular cryptocurrency. He considers that taking important amounts of value out of circulation makes the digital currency a strong competitor to Bitcoin. In O’Leary’s view, Ether becomes a store of value in every sense of the word.
What is the best aspect that EIP-1559 brings to Ethereum?
For the aforementioned investor, the best thing about EIP-1559 is that it eliminates liquidity, creating a kind of shortage for the native Ethereum currency. This, in his opinion, is the best way to add value to an asset. As an example, Bitcoin and its quantitative limitation of 21,000,000 coins can be used as an example.
It should be remembered that EIP-1559 came to solve several problems related to transactions on the network. Prior to it, the transaction fees were distributed among the miners of that currency. Now, an important part of them is burned. That is, they are rendered useless by sending them to a wallet that no one will ever have access to.
By taking a considerable amount of ETH out of circulation per day, a shortage is created, which directly impacts the price. So far, the price of this coin has grown more than 20% since the application of the update. The same happens with its market capitalization, which stands at $ 366 billion dollars.
Some analysts consider that the hard fork London, is a “minimal modification” compared to what will be the ETH 2.0. For the aforementioned Canadian investor, it is the best and most remarkable thing that the Ethereum Blockchain has carried out.