What should you look at when investing in cryptocurrencies? Mark Cuban gives his answer

Key facts:
  • Mark Cuban believes that bitcoin and ether will outperform the S & P500 index.

  • Cuban has invested in scalability solutions, such as Polygon.

Like any good investor, Mark Cuban analyzes the market before investing. For him, the value of cryptocurrencies is not found in the price of their tokens but in the value of their technology.

Just recently, a Twitter account accused the Bitcoin ecosystem, saying that it has no intrinsic value, as traditional industries do. To this, Mark Cuban answered that “token trading is the least important part of cryptocurrencies.”

Cuban believes that being able to create “businesses and platforms” through networks gives added value to these tools. The entrepreneur takes as an example the use of Polygon, an Ethereum scalability solution. The value your native token reaches is intrinsically related to the value of your technology.

In another Twitter thread on the topic that cryptocurrencies are not a “good deal,” Cuban reply that speculation about the tokens of the different networks is nothing more than “noise”. The striking thing must be in its technology, “smart contracts, decentralized applications” that allow building stronger networks.

To better exemplify it, he compares it with developments in artificial intelligence, many of these have come to nothing, or have even turned out to be a fiasco, but many others have made society grow.

Mark Cuban, an investor with vision

Cuban’s position in favor of bitcoin (BTC) and cryptocurrencies is nothing new. In April 2021, Mark revealed that in his crypto asset investment portfolio he owned 60% in BTC and 30% in Ether (ETH), Ethereum’s native cryptocurrency. This before the NFT boom in which the mogul was part of an investment round for more than $ 23 million from one of the main NFT exchanges, OpenSea.

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Cuban sees bitcoin and cryptocurrencies as more than just speculative securities. He has even gone so far as to compare them to long-standing traditional markets, saying that within 10 years, bitcoin and ether will have better profitability levels than those given by the S & P500 index (which brings together the listing of the 500 best companies in the United States.

In 5 years the S & P500 has grown just over 100%, while the current growth of bitcoin is over 4,600%. Source: Google Finance.

Despite the good comments Cuban has offered over the years about bitcoin, he has also cautioned that, according to him, It does not serve as a safeguard of courage in the face of “apocalyptic situations”. For the businessman, in scenarios of economic crisis, governments can seek to shield their currencies and create anti-Bitcoin policies.

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