Mark Cuban is not considered a big fan of cryptocurrencies. Nevertheless, he too has invested money in the crypto market – but makes a very selective choice.
- Cuban gives insight into his crypto depot
- Two cyber currencies dominate
- Praise for Ethereum
Time and again in the past, self-made billionaire Mark Cuban (read Bio here) had criticized the concept of cryptocurrencies, comparing their price rise to the market turmoil during the dotcom crisis, for example.
But in recent months, Cuban has struck more conciliatory tones, especially when talking about the two biggest cryptocurrency representatives, Bitcoin and Ethereum. He believes that they will not only survive a bursting of the bubble, but will also be able to make strong gains as a result. He nevertheless advised investors to “hedge”, i.e. to conclude hedging transactions, in order to keep the risks of crypto investments small:
Here’s what Cuban’s crypto portfolio looks like
Cuban himself has also invested money in cryptocurrencies. In the “Delphi Podcast,” the entrepreneur made public how his crypto portfolio is actually composed: according to this, 60 percent of his crypto investments consist of Bitcoin. Ethereum makes up 30 percent of his portfolio, and the remaining ten percent is made up of other tokens, which Cuban did not name exactly.
It is thus unclear whether this also includes the fun currency Dogecoin, which has been repeatedly pushed by himself as well as by Tesla CEO Elon Musk. You want to invest in cryptocurrencies? Then read more here.
The fact that much of his portfolio is made up of BTC, however, hasn’t convinced Cuban that the oldest cryptocurrency would actually be usable as a means of payment. “It’s not going to work,” the billionaire said. However, he sees bitcoin ahead in another function: as a store of value.
Because of its “algorithmic” scarcity, it is even a better alternative to the traditional store of value, gold, Cuban argues further in the podcast. Unlike the U.S. dollar, more Bitcoins can’t simply be printed; combined with the other properties BTC possesses, it’s a “good store of value,” he says, even if the cryptocurrency is much more volatile than the yellow precious metal. Going forward, he continues to trust bitcoin to outperform gold, saying, “That’s the reason I own bitcoin and have never sold them.”
Cuban sings Ethereum’s praises
While Cuban says he owns Bitcoin specifically for its properties as a store of value, he holds Ethereum coins for other reasons. The investor actually considers the second-largest cryptocurrency a possible currency, at least something closest to our concept of currency. “I have a lot of Ethereum, too. I wish I had bought it earlier, but I started four years ago because I think it’s the closest thing to a real currency.”
But it’s not just on the topic of payment that Cuban thinks Ethereum (read more here) is better than Bitcoin; in an interview with CNBC, he said he even expects the top dog to take the guard down, as ETH outshines its big brother both in the number of transactions, the many types of transactions possible, as well as the increase in value.
Crypto investors seem to agree with him in this regard, as Ethereum has had an extremely successful trading week and surpassed the $4,000 mark for the first time on Monday.