Mark Cuban on the future of cryptocurrency, compares it to the internet

3 minutes
Mark Cuban on the future of cryptocurrency, compares it to the internet

Billionaire investor Mark Cuban is bullish on the future of cryptocurrency and frequently compares blockchain technology to the early days of the Internet.

That's why Cuban bought the few digital coins over the years, he said on a recent episode of The Delphi Podcast. Currently, his portfolio allocation is broken into 60% Bitcoin, 30% Ethereum and 10% the rest of it.

The 2008 Cuban currency Bitcoin, created in 2009, is the largest cryptocurrency by market value, but is attractive to Bitcoin as a store of value rather than a currency.

In 2012, people said bitcoin was a currency and I 'm like 'It's just not going to work. But the entire time, I said it was a store of value where, if you could get people to believe that it was a better alternative than gold because of its algorithmic scarcity, the price is going to go up, he said.

According to Cuban, bitcoin is a better alternative to gold and it's going to continue to be he said. That is why I never sold bitcoin and it is why I have never owned it.

Cuban is also very interested in Ethereum, the blockchain where ether, the second largest cryptocurrency below bitcoin, is built- mainly due to the smart contracts that are installed on it. In the cryptocurrency, smart contracts are collections of code that run a set of instructions and carry on the blockchain.

What really changed everything was smart contracts, Cuban said. Innovative contracts came along, and created decentralized finance or decentralized currency, and NFTs or nonfungible tokens. That's what got me excited about the game; that's what got me excited. That's why it's like the internet. He sees Ethereum as adaptable over time because developers can iterate and improve its capabilities, he said.

That is more life-like, and so I have a lot of Ethereum as well, Cuban said.

I wish I had bought it sooner, but I started buying it four years ago simply because I think it's the closest we have to a true currency. Cuban has n't specifically named the rest of the cryptocurrencies he holds that represent the remaining 10%, but there is none I 'm just all in on, other than bitcoin and Ethereum, which I look at as being an equivalent investment, he said.

In February, Jake bought a small amount of dogecoin, a cryptocurrency that started as a joke for his 11 year-old son Cuban.

Cuban said at the time that the purchase was meant to be educational for his son while also helping Cuban learn more about space. There's some that I do for fun, some I add for learning because I just want to learn, Cuban added.

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