Mark Cuban says, Bitcoin maximalists are mistaken on real crypto upside
Mark Cuban, a billionaire, is talking about what he thinks each part of the cryptocurrency world is worth and does.
Bitcoin will always be a store of value, but he doesn’t agree with maximalists who think it’s the only digital asset worth having.
Some people think that Bitcoin is going to rule the world and make it so that it’s the only currency. It isn’t.
When people think about money, they think of gold. Gold is more difficult to trade than bitcoin, but it’s easier to break up into smaller pieces than gold so that you can share with other people. To store, you can just take the file and put it on a card.
Bitcoin needs to be a store of value.
They then talk about the two main types of crypto tokens and how the more speculative tokens compare to stocks that trade on the stock market.
It is possible to have both types of tokens. Coins that can be used and coins that are just there to be traded. They’re just chances to make money, like OTC stocks.
Most people think of the Nasdaq or the New York Stock Exchange when they think of stocks. You can buy stocks on the Pink Sheets and Bulletin Boards and OTC Stocks, but there are a lot of companies that haven’t been audited. You can buy stocks for pennies on the OTC Stocks.
The stock equivalent of some crypto tokens is called “some crypto tokens.”
Cuban then goes on to explain why he invests in altcoins with real-world use. He says he owns a lot of Ethereum (ETH) and Polygon (POLY) (MATIC).
In the end, some tokens can be used, like Ethereum. They have these things called smart contracts, and they let you trade different things, like NFTs [non-fungible tokens] or insurance contracts on Ethereum. There are a lot of different things you can trade with these things.
Applications like NFTs can be used in a lot of different ways, and we’re starting to see other things like textbooks turned into NFTS. Music, songs, and movies became NFTs. An NFT is a thing that can be made with a “smart contract.”
That’s where the real money is.
Internet sleuths revealed this week what Cuban’s Ethereum wallet looked like. The billionaire owns a lot of Circle’s US Dollar Coin (USDC) stablecoin, as well as a lot of Ethereum and other altcoins.
Cuban says that stablecoins can be used for a lot of things.
Its kind of like the money in the crypto world is stablecoins. One type of stablecoin is called a “stablecoin.” There are two types. Pegged to the dollar, one is called USDC.
For every USDC dollar that someone has in their crypto wallet, there is a real US dollar in a bank account in their treasury that is the same amount. So that’s a safe bet.
Rather than each coin is worth a dollar, algorithms have been made that try to make them look like certain things. This is the second type of game, and it’s how some of the games are played.
These are riskier and… That’s why I think they’re going to be regulated because of that. I don’t think that’s bad.