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Billionaire investor Mark Cuban is optimistic about the future of cryptocurrency and frequently compares blockchain technology to the early days of the Internet.
This is why, over the years, Cuban has kept the few digital coins he bought in the “early days”, Cuban said in a recent episode of “The Delphi Podcast”. Currently, his portfolio allocation breaks down as follows: “60% bitcoin, 30% Ethereum and 10% the rest”.
Bitcoin, created in 2009, is the largest cryptocurrency in terms of market value, but appeals to Cubans as a store of value rather than currency.
In 2012, “people were saying bitcoin was a currency, and I was like, ‘It just won’t work.’ But, all the time, I said it was a store of value where if you could make people believe it was a better alternative than gold, because of its algorithmic scarcity, the price would go up. “, did he declare.
According to Cuban, bitcoin is “a better alternative to gold, and it will continue [to be]”, did he declare.” This is why I own bitcoin and why I have never sold it. “
Cuban is also very interested in Ethereum – the blockchain where ether, the second largest cryptocurrency after bitcoin, is built – mainly because of the smart contracts executed there. In cryptocurrency, smart contracts are collections of code that execute a set of instructions and execute on the blockchain.
“What really changed everything was smart contracts,” Cuban said. “Smart contracts have arrived and it created DeFi [or decentralized finance] and NFT [or nonfungible tokens]. This is what changed the game. That’s what turned me on. That’s why it looks a lot like the Internet. “
He sees Ethereum as “adaptable over time” because developers can iterate and improve its capabilities, he said.
“It’s more like life, and so, I also have a lot of Ethereum,” Cuban said. “I wish I had bought it earlier, but I started buying it four years ago, just because I think it’s the closest we have to real currency.”
Cuban did not specifically name the rest of the cryptocurrencies he owns that make up the remaining 10%, but “there is none that I fully agree with other than Bitcoin and Ethereum. , which I consider an equivalent investment, ”he said.
In February, Cuban bought a small amount of dogecoin, a cryptocurrency that started out as a joke, for his 11-year-old son, Jake. Cuban said at the time that the purchase was meant to be “fun and educational” for his son, while also helping Cuban learn more about the space.
“There are i [buy] for fun, some for the experience, because I just want to learn, ”Cuban added.
Disclosure: CNBC owns the exclusive off-grid cable rights to “Shark Tank”.
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