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The owner of the Dallas Mavericks, Mark Cuban, recently discussed why he opted to keep holding Bitcoin (BTC) and what he believes could help the leading cryptocurrency reach new heights.
In a recent discussion with the Bankless podcast, the renowned investor claimed that Bitcoin (BTC) is experiencing problems with limited utility, which is hurting its mainstream popularity.
Why is he Pro-Bitcoin?
When asked why he continues to hold Bitcoin, Cuban explained that digital currency is a better store of value when investment diversification is an option. He also talked about the factors that, in his opinion, might drive Bitcoin prices to record highs.
Additionally, the Shark Tank investor claimed that Bitcoin (BTC) functions as a digital version of gold. So, in his opinion, investing in cryptocurrencies is a wise move.
How Does BTC Compare to Gold?
Cuban went to the extent of claiming that 80% of the investments he makes that are not on ‘Shark Tank’ are in or around cryptocurrencies. For its function as an inflation hedge, Bitcoin is sometimes attributed to gold, and Cuban appears to concur.
These all are clear indications that the entrepreneur has confidence in the asset class’ ability to withstand the most recent decline and grow after the economy is revitalized.
Even with the Lightning Network, growing and gaining popularity is one of Bitcoin’s challenges. There isn’t enough utility, but gold also has this issue. Gold jewelry is popular and wanted but not necessary. Likewise, Bitcoin has a utility problem, yet despite this, it is a good store of value, much like gold.
“I own it since it serves as a superior value store when seeking to diversify your portfolio. Because I have no idea where it will go or how low it will go, I know that once there are applications with smart contracts that regular people use across crypto, rather than just on Bitcoin, they will take off. Just as streaming was a better way to get audio and video than traditional media, it will take off when there is a better reason to use crypto applications.”
“I always compare Bitcoin to a better version of gold. I sincerely think that it is a digital representation of gold.”
The Bottom line
The cryptocurrency market has not been doing well lately, and during the past week, the top 100 digital assets have all suffered significant losses. Additionally, there could be several causes for this negative trend. For instance, the most recent changes to the Federal Reserve policy have been a major cause of the price crashes.