According To Mark Cuban, Buying Gold Is Dumb, And He’s Going To Buy More Bitcoin




Mark Cuban is an American billionaire entrepreneur, tv personality and media proprietor. He is a co-owner of 2929 Entertainment and the owner of the Dallas Mavericks, a professional basketball franchise in the National Basketball Association.

Mark Cuban is increasing his bitcoin investment and claims he prefers it to gold.

On a December 26 edition of Bill Maher’s podcast “Club Random,” the longtime supporter of cryptocurrencies expressed his desire for the price of bitcoin to decrease even more so that he may purchase more.

In 2022, Bitcoin lost more than 60% of its value. Moreover, as of December 27, values were hovering around $17,000, a significant decline from the highs reached in 2021.

Dallas Mavericks owner said, “It’s not a hedge against anything; instead, it is a store of value. He claimed that gold and bitcoin might be used to store wealth.

As bitcoin’s price continued to fall, he said he would be open to increasing his holdings. The asset lost more than 64% of its value in 2022, while gold has lost less than 1% as of Thursday.

Long Time Crypto Bull

Mark Cuban has a history of being a bull on the cryptocurrency market. The billionaire reaffirmed his faith in the industry as recently as November last year, claiming that crypto will flourish because “smart contracts will have a huge influence in producing useful applications.”

After referring to Ethereum (ETH) as “the closest we have to a legitimate currency” and praising it above Bitcoin, Cuban has historically been viewed as a proponent of the latter.

On writer Laura Shin’s Unchained Podcast in April 2021, Cuban said that “the apps using smart contracts and extensions on Ethereum will exceed Bitcoin.”

Crypto EFTs

Exchange-traded funds (ETFs) that track bitcoin have become increasingly popular recently. They may be bought and sold quickly since they are traded on stock markets. Additionally, investors may now utilise them to participate in the bitcoin market.

For instance, the first U.S. bitcoin-linked ETF on the market, ProShares Bitcoin Strategy ETF (BITO), began trading on NYSE Arca in October 2021. The fund’s cost ratio is 0.95%, and it holds bitcoin futures contracts that trade on the Chicago Mercantile Exchange.

Stocks Of Bitcoin

Firms’ share prices can frequently fluctuate in lockstep with the cost of cryptocurrencies when they connect a portion of their growth to the market.

Bitcoin miners are the first. Costs associated with electricity and computer power can be high. However, if bitcoin prices rise, investors will likely pay more attention to mining companies like Riot Blockchain (RIOT) and Hut 8 Mining (HUT).

Additionally, there are mediators like Coinbase Global (COIN) and PayPal (PYPL). These marketplaces stand to gain as more individuals buy, trade, and utilise cryptocurrency. And then, some corporations have a large amount of cryptocurrency on their balance sheets.

One example is business software expert MicroStrategy (MSTR). Its market cap is less than $2 billion. However, as of December 27, 2022, it had a total of 132,500 bitcoins, with a market value of over $2.3 billion.

About the author, Awais Rasheed

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