Bitcoin Is “A Brilliant Collectible”: Mark Cuban
Billionaire investor weighs in on cryptocurrencies and ICOs; likens Bitcoin to valuable artwork.
American businessman and television personality Mark Cuban has offered an interesting take on Bitcoin, comparing it to precious works of collectible art.
Cuban, who started out as a critic of crypto, appears to have become a convert. As reported by MarketWatch, Cuban recently weighed in on Bitcoin and ICOs during an interview for Real Vision with Kyle Bass (founder and chief of Hayman Capital Management) in late October. The interview was published on November 3.
The prolific investor noted that it would be hard for cryptocurrencies like Bitcoin and Ether to become actual currencies, because only a limited amount of transactions can be done, owing to the expense and time involved. However, Cuban pointed out, they had value in that they were collectible digital assets.
“It’s [Bitcoin] a brilliant collectible that’s probably more like art than baseball cards, stamps, or coins, right, because there’s a finite amount that are going to be made, right? There are 21.9 million Bitcoins that are going to be made.”
He went on to add that investors ought to consider putting 5% in digital coins like Bitcoin or Ether, since it is akin to investing in valuable artwork.
On the subject of Initial Coin Offerings (ICOs), Cuban confessed that he was pro-ICOs, dubbing them “an opportunity”. He went on to add that there were many good ICOs out there, and that he himself was involved with a few, including UniCoin.
ICOs have attracted a great deal of attention lately, not all of it positive. Despite the fact that they have raised more than $2 billion this year for new cryptocurrency ventures, and become a popular method of crowdfunding, ICOs have also put regulators the world over on high alert, owing to hacks, scams, and frauds. China has issued a complete ban on ICOs, while the U.S. Securities and Exchange Commission (SEC) has issued an official warning to investors in regards to initial coin offerings, labelling them ‘securities’.
While Cuban admitted that ICOs required regulation, especially the “dumb ones”, he went on to point out (in particular reference to the SEC) that there is a major problem in that regulators lack real understanding about what cryptocurrencies and ICOs actually are.
“There’s nobody at the top that has any understanding of it.”