Mark Cuban is not considered a big fan of cryptocurrencies. Nevertheless, he has also invested money in the crypto market – but makes a very targeted selection.
The self-made billionaire Mark Cuban had repeatedly criticized the concept of cryptocurrencies in the past and compared their price increase with the market turbulence during the dot-com crisis.
But in the past few months, Cuban has adopted more conciliatory tones, especially when he talked about the two largest representatives of cryptocurrencies, Bitcoin and Ethereum. He not only trusts them to survive a bursting of the bubble, but also to be able to gain significantly as a result. Nevertheless, he advised investors to “hedge”, i.e. to conclude hedging transactions, in order to keep the risks of crypto investments low:
Along the way MANY fortunes will be made and LOST and we find out who has the stomach to HODL and who doesn’t. My advice ? Learn how to hedge.
– Mark Cuban (@mcuban) January 11, 2021
This is 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 its depot, the remaining ten percent is accounted for by other tokens that Cuban did not specifically name. It is therefore unclear whether the fun currency Dogecoin is also included, which he and Tesla boss Elon Musk pushed again and again.
However, the fact that a large part of its depot consists of BTC did not convince Cuban that the oldest crypto currency could actually be used as a means of payment. “It won’t work,” said the billionaire. However, he sees the Bitcoin at the forefront 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, argues Cuban in the podcast. In contrast to the US dollar, more Bitcoins could not simply be printed, combined with the other properties that BTC has, it is a “good store of value”, even if the crypto currency is significantly more volatile than the yellow precious metal. In the future, he believes that Bitcoin will continue to perform better than gold. “That’s why I own Bitcoin and have never sold it.”
Cuban sings praises of Ethereum
While Cuban claims to own Bitcoin because of its properties as a store of value, it holds Ethereum coins for other reasons. The investor actually considers the second largest cryptocurrency to be a possible currency, at least something that comes closest to our currency concept. “I have a lot of Ethereum too. I wish I had bought it sooner, but I started four years ago because I think it’s the closest thing to a real currency.”
But Cuban does not only consider Ethereum to be better than Bitcoin when it comes to means of payment, in an interview with CNBC he said that he was even expecting the top dog to be changed, as ETH is the big brother in terms of the number of transactions, the many possible transaction types and the number of transactions To overshadow the increase in value.
Crypto investors seem to agree with him in this context, because Ethereum has had an extremely successful week of trading and exceeded the $ 4,000 mark for the first time on Monday.