When a billionaire discusses which cryptocurrencies they hold and why, the world pays attention.
And now, Shark Tank star and Dallas Mavericks co-owner Mark Cuban has revealed that 60% of his crypto portfolio is in Bitcoin — with another 30% in Ether and 10% spread across other coins.
Despite Cuban not believing in the future of Bitcoin as a form of currency because it is slow and hard to use, he believes BTC has strong potential to outperform gold as a safehouse for wealth. Speaking to The Delphi Podcast, he said:
“I said it was a store of value where if you could get people to believe that it was a better alternative than gold then because it’s algorithmic scarcity, the price is going to go up like anything else, whether it’s a share of stock that scarce, whether it’s a baseball card that scarce, or whether it’s Bitcoin, they all share the same principle.”
Cuban has famously spotted tech trends in the past, having founded tech start-up MicroSolutions and streaming service Broadcast.com, which he sold to Yahoo! for nearly $6 billion. His predictions of what’s coming next in the world of technology have served him well so far, as his net worth is estimated to be around $4.5 billion.
He now believes that Ethereum is the closest thing to “real currency,” which is the reason that he now holds a lot of ETH.
Game-Changing Smart Contracts
Cuban has said that the creation of smart contracts is really what’s changing the entire technology landscape, and compared with the beginning of the internet on a massive scale. He argues that the fact smart contracts can control everything about a transaction or a process — all while remaining decentralized — can cause a lot of disruption and spark a new wave of business applications. He added:
“The smart contracts and the fact that they’re decentralized and there’s no one in charge, the governance is completely different. That’s what changed the game.”
Cuban rationalizes that NFTs prove how smart contracts work and that the future will be more unique business applications that use NFTs.
And offering a word of advice for would-be investors, Cuban suggested:
“You just have to be able to put the hype aside and really make an effort to understand and learn.”