Billionaire Mark Cuban is Still Unconvinced about Bitcoin’s Status as Store of Value
Billionaire Mark Cuban, who had once opined that bananas are far better medium of exchange in comparison to Bitcoin, has reiterated that he views the asset only as a collectible instead of a dependable form of financial vehicle.
This year has been big with respect to institutional adoption of Bitcoin (BTC). Enterprises such as MicroStrategy and Grayscale considerably boosted their holdings of cryptocurrencies.
Those who are centered around conventional finance, Jim Cramer for example, changed their stance with respect to ownership of cryptocurrencies.
While speaking to Forbes, Mark Cuban, owner of Dallas Mavericks stated that the cryptocurrency investors should avoid viewing Bitcoin as “a hedge against doomsday scenarios.” Furthermore, he also trusts that the cryptocurrency might not substitute fiat currency in the foreseeable future.
Cuban said “[Bitcoin is] a store of value like gold that is more religion than solution to any problem. Countries will take steps to protect their currencies and their ability to tax, so the more people believe this is anything more than a store of value, the more risk of government intervention they face.”
Cuban issued the statement when Bitcoin was trading below $19,000. The price of the numero uno crypto in terms of market cap has since then recorded all time peaks, rallying over $20,000 and trading at $22,845 at the time of writing this article.
The billionaire argued that commodities such as bananas were more beneficial than the crypto, but still categorized it as an asset which is suitable for investment.
“A banana has more utility, potassium is a valuable nutrient to every person on the planet, but as long as people accept BTC as a digital version of gold, it’s investable.”
The estimated net worth of Mark Cuban is about $4.20 billion. His disclosure on August 2019 indicates that he owns Bitcoin worth $130 million earned via his franchise goods and ticket sales. At that time, Bitcoin was trading below $12,000, implying that the value of Bitcoin would have almost doubled in case he had HODLed.