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Wednesday, March 22, 2023

“Bitcoin is a great store of value” says Mark Cuban

NBA team owner Dallas Mavericks explains why Dogecoin is preferable to Bitcoin as a means of payment.

The owner of the Dallas Mavericks Mark Cuban is a well-known billionaire. While NBA fans are longingly waiting for October 19th, he explains in an interview with Fox Business his stance on cryptocurrencies, what he expects in the future and why Dogecoin payments for tickets and merch are not a problem with the Mavericks.

Bitcoin as a salary?

Since August 2019 it has been possible to purchase his ticket to Dirk Nowitzki’s former club using Bitcoin (BTC). In March 2021, the Mavericks extended this offer to Dogecoin (DOGE). Cuban himself is now the proud owner of 1,500 Dogecoins and stands behind the means of payment offered by his association. So far, however, he has not paid his players in Bitcoin because they would incur losses through transaction and conversion fees. He therefore considers it more appropriate for each of the players to invest in the crypto currency themselves. You could almost infer from the interview that he even advises them to:

[Cryptocurrencies are] a better investment than a lottery ticket [at least] if you’re trying to get a home run.

Mark Cuban opposite Fox Business

Dogecoin for purchase, Bitcoin for profit

The billionaire explains that Bitcoin is used far less often as a means of payment. Instead, “thousands upon thousands” of sales would be generated using Dogecoin. Cuban expects that DOGE sales will multiply in two weeks after the start of the season. In his eyes, the reason is that “Bitcoin is a different animal” among crypto currencies. It would not be used for payment, but as a store of value, making it “a better alternative to gold”. Cuban believes that people would hold Bitcoin to make a profit. Dogecoin, on the other hand, is a kind of medium of exchange. So a means with which you should also be able to buy NBA tickets and merchandise.

The fact is that Dogecoins are worth far less than Bitcoins. The transaction costs are also lower and there is an unlimited supply of Dogecoin. Undoubtedly an argument for the attractiveness of DOGE over BTC, because you lose less if the value increases in the future.

Dogecoins in the hands of the less powerful

Nevertheless, Dogecoin has a brand that cannot be ignored: A single wallet holds almost 30 percent of all available Dogecoins. In total, only 25 wallets sit on almost half of all Dogecoins. This one wallet, or these 25 wallets, therefore have extreme pricing power. If they sell a particularly large number of coins, the price will (presumably) fall for the entire ecosystem. Even “Dogefather” Elon Musk criticized this as the “only problem”. As BTC-ECHO reported , in February he urged the other whales (even in return for a US dollar payment on his part) to reduce the concentration of the wallets. After that post, the composition actually changed a little, at that time only 20 wallets held over 50 percent of the meme currency.

Crypto on the rise

The owner of the Mavericks also said in an interview that he himself expects a development that is comparable to the establishment of the Internet. However, he does not see Bitcoin, but Ethereum as the driver of this change. The “really relevant network” offers security and decentralization the chance to develop completely new products by means of smart contracts. He believes that in the future, unique business applications will first transform the financial sector and then traditional business models. He himself reveals that he is investing in decentralized insurance applications.

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