Billionaire Mark Cuban is doubling down on bitcoin and says he even prefers investing in digital assets to gold.
The longtime crypto advocate said he expects the bitcoin price to drop further so he can buy more on the Dec. Podcast “Club Random” by Bill Maher.
Bitcoin has lost more than 60% of its value by 2022 and the price fluctuated just below $17,000 on December 27 – much lower than the price of the digital currency. the highest level in 2021.
Financial experts often consider gold as a good way for people to protect the value of their portfolio from decline due to inflation. However, in his interview with Maher, Cuban called gold investors “stupid”.
“If things go to hell and you have a gold bar, you know what happens? Someone will beat you to death or kill you and take your gold bar,” he explained.
When comparing the two, Cuban said that both gold and bitcoin are “stores of value,” meaning he believes both assets maintain their value rather than depreciate.
However, there is a key difference between how gold and bitcoin derive value.
The value of gold is derived from its relative scarcity and its long history of exchanging goods and services.
On the other hand, bitcoin and other cryptocurrencies are a relatively new form of payment.
Most digital currencies do not derive their value from an underlying entity, which exposes them to unpredictable fluctuations in price.
The bitcoin price is currently trending much lower than the January price while gold is down just over 1% as of Dec.
