Mark Cuban is an American billionaire entrepreneur who began paving his way to success in 1990 and now has a net worth of nearly $4.5 billion as of 2021. Recently, Cuban has revealed his interest in cryptocurrency and has some opinions regarding it as well.
Mark Cuban is very optimistic regarding the future of cryptocurrency. According to his experience and predictions, the advantages of bitcoin outweigh the other cryptocurrencies. In his recent tweet, Cuban clarified, the reason for bitcoin having the edge over other currencies is zero competition. There’s no other cryptocurrency of the same store value as that of bitcoin, and he has declared it “better than gold.”
Cuban further expounds that algorithmic scarcity is the reason for bitcoin’s unmatched store of value. The infrastructure of bitcoin has limited its supply which will consequently increase its demand in the future. Thus, Mark Cuban is buoyant for the fate of Bitcoin as well.
This billionaire investor sees Bitcoin along with Ethereum as a “safe haven.” He predicts these two digital assets will be safe investments despite the financial crisis the market may or may not face in the future. Their value will keep on accelerating and have no effect on the market turmoil.
However, his tweets regarding the bright future of bitcoin came after he exchanged his views on the application of Bitcoin and Ethereum. Some of which were accepted, while the others did not receive a positive response.
According to the Bitcoin maximalist perception, Bitcoin is just another decentralized digital currency that can be traded on a peer-to-peer network without human intervention and has the potential to take over the fiat currency. On the other hand, despite being an avid cryptocurrency supporter, Mark Cuban also says he sees bitcoin merely as a store of value, not a medium of currencies that will be used normally anytime soon as, in his opinion, bitcoin is “not a cure for financial systems.”
Mark Cuban revealed his portfolio allocation in one of the episodes of The Delphi Podcast, and he owns around “60% Bitcoin, 30% Ethereum and 10% the rest”. Now speaking of Cuban’s liking, knowing that he has invested in both coins, Bitcoin and Ethereum, yet he still prefers Ethereum over Bitcoin. The reason for this is, Bitcoin does not have much of a demand pull, whereas he can see a myriad of potential use cases associated with Ethereum. Moreover, when asked which currency he would suggest for beginners, Cuban replied, “as an investment, I think Ethereum has the most upside.”
The major reason for Cuban preferring Ethereum is the Smart Contract it is built on. The smart contract is a set of codes that works only if the prerequisites are met. It executes an agreement using blockchain encryption and economic transactions along with powering Decentralized Finance applications and Non-fungible tokens, which have further proved to be masters in their fields.
Mark Cuban is really positive about the Ethereum prospects as well. He sees Ethereum as an adaptable currency that will be further improvised in the future. In Cuban’s words, “What really changed everything was smart contracts.”
Keeping Cuban’s opinions aside, one must know; the crypto market is a volatile market. The future of cryptocurrency will always be uncertain as risk is in its nature. Therefore, one must keep his eyes and mind alert when investing and only invest an appropriate amount which he can afford to lose, for nobody can predict the ups and downs of this market.