Multi-billionaire tycoon Mark Cuban is a strong proponent of cryptocurrency as he believes Blockchain technology can be compared to the internet's early days.
This is the reason why he is among the few investors who held onto the few digital coins he purchased years back.
Cuban said in a statement to The Delphi Podcast that most of his digital coin asset is allocated to Ethereum. Specifically speaking, the investor states that 60% of his cryptos are Bitcoin, 30% are Ethereum, and the remaining 10% are a mix of various coins.
Bitcoin as a long-term asset
Bitcoin is currently the most popular and widely-used cryptocurrency. And Cuban believes that its status as the highest crypto by market value is to blame for this. He further said that Bitcoin is ideal as a store of value instead of being used as a currency due to its extreme volatility.
Cuban further explained his idea, saying that Bitcoin won't work as a currency. Instead, it can be ideally used as value storage where you can market it as a very rare commodity so that its value will increase exponentially.
Bitcoin's algorithmic scarcity is also another reason why it's better used as a long-term asset instead of being a new currency.
Furthermore, Cuban states that Bitcoin is better than gold in terms of value and that it'll remain that way.
He then says that it's the reason why he is a strong Bitcoin HODLer. HODLing is a crypto slang term for people who don't sell their cryptocurrencies despite the price variations.
Ethereum is the Future
Mark Cuban sees Ethereum as the alpha cryptocurrency due to its stability and value. Ethereum (ETH) is currently the crypto with the second-highest value next to Bitcoin. It also has many applications, such as smart contracts, which makes it more practical than BTC.
A smart contract is a collection of code that works on a specific set of instructions running on Blockchain.
Cuban states that smart contracts gave way for DeFi (decentralized finance) to become the go-to for businesses seeking improved efficiency. This also helped NFTs (non-fungible tokens) to enter the mainstream market and speed up blockchain adoption.
Furthermore, Cuban strongly believes that Ethereum can quickly adapt to the changes in the trend of the financial landscape. He says that individual developers can autonomously change, revise, and improve their functions through time.
The Future of Cryptocurrencies
Another reason Cuban and many other financial experts believe that Ethereum is better than BTC is that it has many similarities with fiat currencies.
Cuban didn't reveal the other coins he owns that represent his remaining 10%. But he assures that it doesn't matter because what counts is only Bitcoin and Ethereum.