We already knew about Elon Musk’s fondness for Dogecoin (DOGE), which allows him to troll regularly on Twitter. But this time, it’s billionaire Mark Cuban who puts the crypto-toutou Shiba on a pedestal.
Bitcoin is good, but it’s getting too valuable
While Mark Cuban has put away his mockery of Bitcoin (BTC) to become rather bullish on crypto-currencies, some of his positions remain questionable to say the least.
In a recent interview with Fox Business, the billionaire nevertheless begins by conceding a compliment to Bitcoin, calling it a safe haven against inflation:
“As a whole, Bitcoin is a bit of a different animal as a crypto (…) It’s a great alternative store of value (…) even better than gold.”
But for the owner of the Dallas Mavericks basketball team, the problem with Bitcoin is that its deflationary nature – with fewer and fewer Bitcoins being mined with each halving – has the effect of making it appreciate, especially compared to fiat currencies like the U.S. dollar, which are depreciating.
Dogecoin, it’s worth nothing, so it’s ideal to trade?
In Mark Cuban’s logic, if people are reluctant to exchange their bitcoins that are gaining value over time, this would not be the case with dogecoins.
At least that’s what the billionaire seems to be seeing with cryptocurrency sales of his team’s NBA game tickets: Mavericks fans would spend their DOGEs more willingly than their BTCs.
“Not many people pay in bitcoin because it’s really an appreciating asset (…) they want their asset to appreciate in value. (…) A lot of people pay in dogecoin. We sell for thousands and thousands of dollars [paid in DOGE] a month, during the off season. And once the season starts, I expect those amounts of sales in dogecoin to be realized even weekly.”
The billionaire clarifies, however, that he has never told anyone that Dogecoin is a great investment. Instead, he finds it is also “a great way to understand how cryptocurrencies work.”
For a long time very critical of Bitcoin and cryptos, Mark Cuban seems to have calmed down a lot, and even started to know the subject rather well, because in addition to Bitcoin and Dogecoin, the billionaire is indeed also very interested in decentralized finance (DeFi).