Ethereum ‘Is A Better Platform’ Than Bitcoin says Mark Cuban, But Owns Double the BTC
The billionaire investor has “a lot of Ethereum,” too, which he says is “the closest we have to a true currency.” He also said, “Crypto will do to fintech what fintech did to banking.”
Billionaire investor Mark Cuban has been very clear that he is very bullish on the cryptocurrency industry.
As Cuban has been saying, “Bitcoin is now accepted as “an alternative asset” and he sees it replacing gold “in the portfolios of a lot of people.”
However, it won’t be instant rather a gradual process as we have started to see with Bitcoin ETFs. While the US is still awaiting its first one, several companies (Skybridge Capital, VanEck, Fidelity, Valkyrie, NYDIG, Wisdom Tree, and most recently Goldman Sachs) have joined the race for the same, and three ETFs (Purpose Bitcoin ETF, Evolve Bitcoin ETF, and CI Galaxy Bitcoin ETF) are already trading in Canada, and one in Brazil. Cuban said in an interview with UpOnly.
“It's too difficult still to get money into a wallet just to buy bitcoin so you need to have somebody that you can work with that is going to hold it for you because most people are going to be terrified of having you know that bitcoin in their own custody.”
In an episode of “The Delphi Podcast,” Cuban also revealed his portfolio allocation, which consists of “60% Bitcoin, 30% Ethereum, and 10% the rest.”
Once again, he shared his interest in Ether, saying, “I have a lot of Ethereum,” adding “I wish I had bought it sooner, but I started buying it four years ago, simply because I think it’s the closest we have to a true currency.”
“Crypto Will Do To Fintech What Fintech Did To Banking”
Talking about the biggest obstacle, the high fees on the second largest network, Cuban compares it to “almost like the early days of the internet where bandwidth was the big impediment.”
Saying that during that time, one couldn't do a video, and it was crazy, “but we knew at some point bandwidth would open up. Transactions per second is the equivalent of bandwidth.”
One of the main sectors built on Ethereum is decentralized finance (DeFi), which “allows anybody to be their own personal banker.” Anyone can do almost anything in seconds, “you just make your choices, and you live with the results,” said Cuban.
As for the biggest challenge in DeFi for regulators, it is “just going to be fraud.”
But as wild west elements start to soothe, Cuban thinks it will be the fintech that will feel the heat first. “Crypto will do to fintech what fintech did to banking,” said Cuban.
He points out how everybody's building layer two solutions (like Optimism, Hermez, and Polygon) because Ethereum is too slow and 2.0 is still not here, “so everybody's just trying to take chunks out of it, and that's what fintech is.”
“Fintech is taking out chunks from the banking system because they're too slow to do what's obvious to everybody else, and crypto will do the same thing to fintech because fintech showed where banking is slow, and there's more open banking coming.”