Cuban says that Bitcoin is a Greater Risk.
Mark Cuban says: “Ethereum has greater long term value [than Bitcoin], period, end of story.” He also stated that Bitcoin is now at greater risk than Ethereum.
The COVID-19 pandemic prompted a large boost in crypto prices. Bitcoin is up by 526% last year, and Ethereum is up by 2,000%. Now the world asks if there will be another “Crypto Winter” like in 2018.
“I don’t think you’re gonna see it,”
mark cuban
He said because the number of people invested in the biggest coins has swelled. To a point where the investors might buy back in before the prices can get really low.
“I saw something that said 2 million people are using DeFi right now,” Cuban noted. “That’s a whole lot of money that’s not going through the banking system.” Cuban states that these conversations happen everywhere.
“We were talking about DeFi, and I told these guys, ‘You gotta learn it a little bit.’ I tell them, ‘Look, effectively, if you were to convert to DAI [an Ethereum-based stablecoin], or just with Ethereum, right, you can make a good 4%, 5%, 10% if you went and converted some things. And let’s just say it goes horribly wrong and it collapses 50%, 75%, how’s that compared to your savings rate right now? You’re making .02%.'”
Cuban added: “And so, unless you’re stupid, you’re not going to lose your capital, you’re just going to lose the upside; you might lose whatever the coin is you’re getting paid in, but your Ethereum is going to be locked, or your DAI is going to be locked, as a stablecoin. I don’t see those taking a fall.”
What is the best option?
In the past, Cuban said that he sees greater future potential in Ethereum than Bitcoin. If there will be a big price correction, he thinks Bitcoin is the greater risk.
“I think Bitcoin is the greatest risk of a pullback, simply because there’s so many dollars worth of derivatives, and so people speculate so much, and you don’t have an efficient market in terms of buying and selling it,” he said.
“Each global market has its own pricing, and a buyer of Bitcoin, or any crypto for that matter, doesn’t automatically get the best price like you do with a share of stock, for the most part,” Cuban elaborated.
“I think Ethereum has greater long term value, period, end of story. Because Ethereum has more utility than Bitcoin does.”
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