Mark Cuban has an extensive portfolio in cryptocurrency including digital coins, NFTs and various blockchain companies. The 'Shark Tank' investor and Dallas Mavericks owner is a big fan of the space, and here's why.
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“As an investment, I think ethereum has the most upside,” Cuban tells CNBC Make It. And bitcoin is “better gold than gold.”
Ethereum
Cuban believes that Ethereum is the closest we have to a true currency due to its "smart contracts." Smart contracts are collections of code that automatically execute when predetermined terms and conditions are met on the blockchain. These power NFT's, which are also stored on Ethereum and decentralized finance, what cryptocurrency runs on. Since Ethereum has such strong smart contracts, their decentralized finance is also strong, allowing them to operate on the blockchain without the usage of banks and brokerages.
Bitcoin
In Cuban's words, the most common cryptocurrency, Bitcoin, is untouchable due to its "algorithmic scarcity, making it better than gold." Algorithmic scarcity represents the idea that Bitcoin cannot respond its supply to increases in demand. There is a finite amount of the coin at 21 million which makes it intrinsically volatile. This means that since Bitcoin cannot release any more coins than its finite amount, it can only price adjust, increasing its value. This is what Mark Cuban is talking about when calling it better than gold, because of its inflexibility, the larger the market for the coin constitutes larger price swings.
https://www.coindesk.com/business/2021/01/28/scarcity-gives-bitcoin-value-but-not-the-way-you-think/