The pragmatism and openness to change of the Ethereum community were the major reasons that encouraged tech investor Bill Gurley to invest in the number two cryptocurrency.
“I have to confess I was convinced by the Ethereum crowd’s arguments, and I’ve adopted a personal opinion, not something at Benchmark,” Gurley said in an interview on Wednesday.
Gurley is a venture capitalist best known for his early $11 million investment in Uber in 2011, which has now grown to a market capitalization of more than $76.5 billion. Gurley is also a general partner at Benchmark, a Silicon Valley-based venture capital firm based in Menlo Park.
Unlike his early Uber bet, Gurley has admitted that he was “kinda late” to the realm of cryptocurrency since he was preoccupied with other things and “didn’t spend a lot of time on crypto.”
This changed in April, when he spent “quite a deal of time listening and reading,” at which time he developed a strong interest in Ethereum.
“The Ethereum mob has swayed me. The parties involved appear to be much more realistic; they appear to be open to change and are implementing various adjustments that I believe will reduce fees and be highly beneficial. “The developer community is obviously on Ethereum’s side,” Gurley observed.
Ethereum development continues apace.
Indeed, with the deployment of the London update, Ethereum 2.0, the blockchain’s ambitious multi-year enhancement plan aimed at improving network throughput and energy usage, has been in full swing.
One of the most significant advantages of Ethereum’s shift to a new consensus algorithm is that the proof-of-stake (PoS) consensus process is far less computationally and energy-consuming than the current algorithm, which is also used to mine Bitcoin.
The crypto industry as a whole has recently been under scrutiny for its environmental impact, causing many developers and networks to take extra (sometimes unconventional) steps to address these issues.
According to Gurley, Ethereum’s shift to PoS could even give it an advantage over Bitcoin.
“I believe there will be an ESG [Environmental, Social, and Corporate Governance] benefit once they transition to proof-of-stake against Bitcoin. If you’re going to have crypto exposure, that appears to me to be the smartest way to play it,” he said.
At the same time, Gurley emphasized that he is not a crypto “maximalist” and does not believe that people should be “necessarily” introduced to cryptocurrency.