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What should you look at when investing in cryptocurrencies? Mark Cuban gives his answer

Key facts:
  • Mark Cuban believes that bitcoin and ether will outperform the S&P500 index.

  • Cuban has invested in scalability solutions, as is the case with Polygon.

Like any good investor, Mark Cuban analyzes the market before investing. For him, the value of cryptocurrencies is not found in the price of their tokens, but in the value of their technology.

Recently, a Twitter account accused the Bitcoin ecosystem, saying that it has no intrinsic value, as traditional industries do. To this, Mark Cuban answered that “token trading is the least important part of cryptocurrencies.”

Cuban considers that being able to create “businesses and platforms” through networks gives added value to these tools. The entrepreneur takes the use of Polygon, an Ethereum scalability solution, as an example. The value that your native token reaches is intrinsically related to the value of your technology.

In another Twitter thread on the topic of cryptocurrencies not being “good business,” Cuban reply that the speculation on the tokens of the different networks is nothing more than “noise”. What is striking must be in its technology, “intelligent contracts, decentralized applications” to build stronger networks.

To better exemplify it, he compares it with the developments in artificial intelligence, many of these have not come to anything, or have even been a fiasco, but others have made society grow.

Mark Cuban, an investor with vision

Cuban’s position in favor of bitcoin (BTC) and cryptocurrencies is nothing new. In April 2021, Mark revealed to you that in his investment portfolio in crypto assets he had 60% in BTC and 30% in ether (ETH), the native cryptocurrency of Ethereum. This before the rise of NFTs in which the tycoon was part of an investment round for more than USD 23 million from one of the main NFT exchanges, OpenSea.

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Cuban sees in bitcoin and cryptocurrencies something more than speculative values. He has even gone so far as to compare them to long-standing traditional markets, saying that 10 years from now, bitcoin and ether will have better levels of profitability than those given by the S&P500 index (which brings together the price of the 500 best companies in the United States.

In 5 years the S&P500 has grown just over 100%, while the current growth of bitcoin is over 4,600%. Source: Google Finance.

Despite the good comments that Cuban has offered over the years about bitcoin, he has also warned that, according to him, it does not serve as a safeguard of value against “apocalyptic situations”. For the entrepreneur, in scenarios of economic crisis, governments can seek to shield their currencies and create anti-bitcoin policies.

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HELEN HERNANDEZ

Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Helen@oicanadian.com Phone : +1 281-333-2229

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