In a recent interview, Dallas Mavericks basketball owner Mark Cuban said that investors in digital currencies should be able to “weed out” projects that make a lot of noise but are not really useful. Cuban specifically focused on bitcoin and ether, comparing them to each other. He called bitcoin an alternative to gold and a means of preserving value, while ether is different because, through the use of smart contracts, various decentralized applications are created on the basis of this network.
Mark Cuban: “When investing in cryptocurrencies, you need to understand their value”
According to Kuban, investments in cryptoassets should be treated the same way as investments in any other asset. We need to examine how digital assets can benefit the public, and whether they have value that individuals or organizations can take advantage of. If the answer is no, then it cannot be called an investment, says the billionaire.
“In 1995, when all the companies went online and created websites, people were excited and invested in them just because they went online. The same thing is happening now with cryptocurrencies. So of all the offerings, it’s important to ‘distinguish the grains from the chaff,'” Cuban said.
He commented on the decline in cryptocurrency rates, stressing that any market always reacts keenly to any events and news. Speculators and investors are trying to protect their funds and not to miss out on profits, so they rush to transfer money into cash. However, sooner or later people will return to the market, Kuban concluded.