Mark Cuban, a billionaire investor, believes bitcoin has an advantage over other cryptocurrencies.
Cuban tweeted Saturday that bitcoin has ‘a huge advantage’ because it has ZERO competition as a store value. Cubans even call bitcoin the best store of value.
According to Cuban, this is due to the algorithmic scarcity that makes bitcoin scarce by design. Cuban views bitcoin as an asset that will increase in value as the demand grows. Cuban has previously said that bitcoin is comparable to gold and that it is a better place to store value than gold.
The Dallas Mavericks owner and investor of ‘Shark Tank’ is so bullish about bitcoin, he believes it will be considered a’safe haven’ in crypto. This means that bitcoin will continue to grow or keep its value even in turbulent times.
Cuban’s remarks aside, financial experts consider cryptocurrency to be risky, volatile, and speculative. They advise that investors only lose what they can afford.
After he had debated the use of Ethereum and bitcoin with some of his fellow bitcoin maximalists, Cuban started a thread of tweets. Although they agreed on some things, Cuban’s ideas were met with resistance.
The bitcoin maximalists see the bitcoin blockchain as a peer-to-peer, decentralized financial system that could replace traditional financial systems. They see the cryptocurrency as both an exchange medium and a hedge against inflation.
Cuban stated that bitcoin is not a solution to any financial system and is not a hedge. Cuban views bitcoin as an asset that will appreciate in value, but he does not consider it a currency or medium of exchange that can be used frequently for transactions due to fees and taxes.
Cuban said that although he has invested in both Bitcoin and Ethereum, prefers ether more .
Cuban explained that he can see unlimited applications that will transform the biz/consumer market forever. “And you have to buy Eth to use them… BTC does not have that demand pull.”
Cuban refers to smart contracts or collections of code on the Ethereum blockchain that power Decentralized Finance or DeFi, applications, and nonfungible tokens or Nonfungible Tokens. According to him, smart contracts “truly changed everything” in the crypto space.
Cuban stated that ethereum is the best cryptocurrency for new investors or beginners in the space when he was asked.