Billionaire Mark Cuban is doubling down on bitcoin and says he even prefers investing within the digital asset over gold.
The longtime cryptocurrency advocate mentioned he hopes the value of bitcoin goes down additional so he should buy extra throughout a Dec. 26 episode of Bill Maher’s “Club Random” podcast.
Bitcoin has lost over 60% of its value in 2022 and costs had been hovering just under $17,000 as of Dec. 27 – far beneath the digital coin’s 2021 highs.
Monetary specialists sometimes think about gold to be a good way for people to protect the value of their investment portfolio from declining on account of inflation. Nevertheless, Cuban known as gold traders “dumb as f—” throughout his interview with Maher.
“If all the things went to hell in a hand basket and also you had a gold bar, you recognize what would occur? Somebody would beat the f— out of you or kill you and take your gold bar,” he defined.
When evaluating the 2, Cuban mentioned that each gold and bitcoin are a “retailer of worth”, which means he believes that each belongings keep their worth somewhat than depreciating.
Nevertheless, there’s a key distinction between how gold and bitcoin derive worth.
Gold’s worth is derived from its relative scarcity and its lengthy historical past of being traded for items and companies.
However, bitcoin and different cryptocurrencies are a comparatively new type of cost.
Most digital cash do not derive their worth from an underlying entity which makes them topic to unpredictable fluctuations in worth.
Bitcoin costs are presently trending far beneath their January costs whereas gold has solely diminished by a bit over 1% 12 months so far as of Dec. 27.
