The Conglomerate Mark Cuban's Advice: Don't Buy Crypto Money Carelessly

Cuban conglomerate Mark Cuban crypto investment (Bitcoinist)

JAKARTA – In the midst of the rise of cryptocurrency investment, US billionaire Mark Cuban revealed his way of investing in cryptocurrencies. Cuban compares a number of blockchains that underlie cryptocurrencies.

Because each crypto asset uses its own blockchain technology. Cuban looked at the characteristics of the technology specifically, this he did before buying cryptocurrencies.

The owner of the Dallas Mavericks basketball club stated that he views blockchain as a network used for platform development through smart contracts.

Cited from CNBC International, Mark Cuban said that people see a comparison of the speed and gas (cost) of each transaction of each cryptocurrency, for example comparing the transaction speed of Bitcoin (BTC) with Ethereum (ETH).

For information, blockchain is a decentralized digital ledger that records all cryptocurrency transaction data and stores other information. Therefore, for Cuban, each blockchain has its own characteristics.

The closest example is the Ethereum blockchain which is capable of running smart contracts to support the development of decentralized applications which include DeFi (decentralized finance), and NFT (non-fungible tokens).

Not only that but the Ethereum blockchain can also be used as a platform for the development of other cryptocurrencies. This is what Cuban often pays attention to before investing in cryptocurrency.

“Ethereum is looking for a way to become a fully functional infrastructure platform. Etherum itself can perform a number of economic tasks, surpassing Bitcoin, which is known to have a peer-to-peer electronic money system", said Kathy Lien of BK Asset Management.

In the case of blockchain creation or verification, such as NFT digital asset transactions on the blockchain, users will be charged by the blockchain developer. These costs can be very expensive if the demand is high.

Cuban explained that it depends on how the costs are distributed. It can provide real income and increase the price of tokens being developed.

However, blockchain technology is not only used for cryptocurrency transactions. Blockchain can also be used for other purposes, as Ethereum does.

Some time ago, Cuban reportedly invested in the cryptocurrency Polygon (MATIC). Cuban also allows the purchase of Dallas Mavericks merchandise using the cryptocurrency Dogecoin (DOGE).