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Someone finally said it: Mark Cuban, well-known billionaire entrepreneur and investor, talked about how Bitcoin is “just not going to work” as a currency, being more of a “store of value” with the potential to be a better alternative than gold. On the other hand, Cuban talked about owning a lot of Ethereum (ETH), because he believes that it’s the closest to being a “true currency”.
According to Cuban, “in 2012 people said Bitcoin is a currency, and I’m like, ‘It’s just not going to work.’ But, the entire time, I said it was a store of value where, if you could get people to believe that it was a better alternative than gold, because of its algorithmic scarcity, the price is going to go up.” About Ethereum, Cuban said, “what really changed everything was smart contracts. Smart contracts came along, and that created DeFi and NFTs. That’s what changed the game. That’s what got me excited. That’s why it’s a lot like the internet.”
Cuban is known for being one of the sharks in the hit ABC TV show, Shark Tank. Cuban owns the Dallas Mavericks and Magnolia Pictures At the time of writing, his net worth is estimated at around $4.3 billion.
Billionaires Supporting Bitcoin
Cuban is another addition to a string of billionaires who openly advocate for the broad acceptance and adoption of digital currencies.
In February, Tesla publicly announced a $1.5 billion Bitcoin purchase through an official filing with the Securities and Exchange Commission (SEC). According to the document, the purchase was done in order to diversify and “diversify and maximize returns” on the company’s cash. On March 24, Musk announced that Tesla will be accepting Bitcoin as a payment option, driving Bitcoin’s prices further up.
Hedge manager Paul Tudor Jones is another prominent billionaire on the list, saying that the path for the currency had nowhere to go but north.
Bitcoin as a Store of Value
Cuban’s view of Bitcoin as a store of value is not new. Bitcoin’s utility has been in question for a long time. Bitcoin has evolved to be a very different entity from the peer-to-peer electronic cash system described in the whitepaper published by Satoshi Nakamoto in 2009.
Instead of being the electronic payment method that it was designed to be, Bitcoin’s evolved to be an investment vehicle. For something so innovative, Bitcoin’s strangely resistant to change.
Revolutionising Money
While Bitcoin paved the path and is rightfully enjoying the first mover advantage, other cryptocurrencies have stepped up to the plate and innovated. Ethereum introduced the concept of smart contracts, a breakthrough that showed people what exactly is possible with cryptocurrency.
Following closely are currencies such as Cardano which are designed to improve upon Ethereum’s technology, and currencies such as Polkadot and Nano which are revolutionising how cryptocurrencies operate with one another. Investors have more than Bitcoin to choose from now.
Cuban has always been outspoken in his support of retail investors. In a blog published in January 31, 2021, he wrote:
“They as a group they can target any hedge fund, any stock, any time , for any reason and change the game. No different than a major wall street analyst making a major call can move a stock by getting their Whale followers or clients to buy or sell, now WSB and the people who follow it, the collective, can do the same, but with much more power and impact.”
Innovation is the name of the game when it comes to cryptocurrency. While this statement isn’t about Bitcoin per se, Cuban’s statement on retail investors shows his vision of the exact power of individual investors:
“It can be absolutely positive. Push up the stock of a company that has a strong social mission they support. Push up the stock of a company that offers equity to their employees at the lowest levels so they can sell into the market and gain wealth. Take significant positions in a company and act as activist investors. (...) Being able to have an immediate impact on something that is of significance and importance to them can be amazing and great for this country.”
Buying a coin is like giving a vote of confidence on a particular version of the future. Cuban (along with other billionaires and millionaires) are investing in Bitcoin to diversify their assets. However, he believes in Ethereum’s capability to be a global digital currency.
Among the versions of the future carried by the numerous innovative coins released into the market daily, which ones are you going to vote for?
One such innovative coin is The People’s Reserve, a coin whose price is pegged to the last highest price of gold, and compounds at a rate of 12% per annum, with the goal of bringing the power of compounding interest back to the people.
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