Billionaire Mark Cuban is increasing his investments in Bitcoin and says he prefers it over gold as an investment option.
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During a Dec. 26 episode of Bill Maher's "Club Random" podcast, the long-time cryptocurrency advocate raised hopes that the price of bitcoin would drop further so that he could buy more.
In 2022, Bitcoin lost more than 60% of its value, and as of December 27, values were hovering around $17,000, a significant decline from the highs reached in 2021.
According to financial experts, buying gold is a great way for people to secure the value of their investment portfolio from decreasing due to inflation.
He said, "If everything went to hell in a handbasket and you had a gold bar, you know what would happen? Someone would beat the f—- out of you or kill you and take your gold bar."
Cuban stated that both gold and bitcoin are a "store of value," which means that he thinks both assets will retain their value instead of depreciating.
However, there is a notable change in how gold and bitcoin accrue value. The value of gold is derived from its scarcity and long history of being traded for goods and services. However, compared to other payment methods, cryptocurrencies like bitcoin are a more recent creation.
The majority of digital coins are not valued by an underlying entity. It renders them subject to unpredictable price changes.
Gold has only decreased by slightly more than 1% year to date as of December 27, whereas Bitcoin prices are currently going far below their January prices.
Goldman Sachs predicted that gold would outpace bitcoin over the long term in its latest research report.
Bitcoin was described as "a solution looking for a problem" by the multibillion-dollar global investment bank, and it is expected that it will remain an extremely volatile asset until further applications for it become evident.
To that extent, investors seem to be less interested in crypto investing than Cuban.