Not many would argue that cryptocurrency has taken the world by storm lately and that the main digital asset that has become synonymous with the term ‘cryptocurrency’ itself is indeed Bitcoin. Not only is Bitcoin the biggest cryptocurrency in the world in terms of market capitalization, but it had also managed to reach an all-time high price recently when it broke through the various resistance barriers in order to reach the $60,000 mark.
Many companies, firms, and organizations have thus either already adopted a method of paying in Bitcoin for their respective products and services, or they are currently in the process of doing so. It is with this in mind that billionaire Mark Cuban, a serial entrepreneur, and investor, recently declared that Bitcoin could very well replace gold when it comes to the portfolios of numerous individuals worldwide.
‘Investors find it easier to buy Bitcoin,’ says Cuban
As the owner of the Dallas Mavericks and one of the ‘sharks’ on Shark Tank (a reality show that is aired on the ABC TV network), Cuban certainly had a lot to say about Bitcoin. It was during an episode of the ‘UpOnly’ podcast, which had taken place earlier on in the month, that Cuban gave us his thoughts.
Simply put, he believes that Bitcoin is an excellent platform, and it is now recognized. It is a different kind of asset that has the potential to overtake gold in many people’s portfolios, which could also drive up the price provided that the whales manage to continuously hold.
‘But that’s a different kind of network, and the usefulness is still only realized when you wrap it, at least for the time being,’ according to Cuban as he added to his earlier comments. Moreover, he thinks that Bitcoin can ‘chip away at gold’ as Bitcoin continues to become increasingly accessible to institutional buyers all over the world.
Bitcoin, like gold, is built on trust
However, since there are more opportunities for consumers to buy from people from whom they have had savings and retirement plans, gold will be eroded. Since gold, like Bitcoin, is traded on the basis of a narrative and is always dependant on confidence, it ultimately comes down to whether someone trusts Bitcoin or gold.
Cuban believes that since gold has little utility in and of itself, younger generations are much more likely to trust Bitcoin and cryptocurrency in general. He added that if we were to ask younger individuals what the value of gold is to them, most likely, they would say that it has little to no value at all.