"Digital gold"— Shark Tank star Mark Cuban highlights Bitcoin's growing relevance

Shark Tank judge Mark Cuban recently emphasized Bitcoin's growing significance, likening it to "digital gold." Appearing on The Weekly Show with Jon Stewart on December 13, Cuban explained:

“So just think of Bitcoin like digital gold. Period, end of story.”

Cuban expanded further by comparing Bitcoin’s limited supply to gold's scarcity, arguing that Bitcoin has become a modern alternative to the precious metal. With its decentralized structure and ease of transfer, Cuban believes Bitcoin is increasingly relevant in today’s global economy, especially among younger generations.

The conversation covered various aspects of cryptocurrency, with Cuban explaining its role as a store of value and an efficient medium for international transactions. The Shark Tank star explored how Bitcoin and other cryptocurrencies like Ethereum are disrupting traditional financial systems.

He highlighted that while crypto is not without its challenges, its potential to revolutionize industries such as payments, publishing, and intellectual property rights makes it a compelling innovation.

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Shark Tank star Mark Cuban's crypto insights

During his appearance, Shark Tank star Cuban drew comparisons between Bitcoin and gold, calling both stores of value that depend on supply and demand. He explained:

"Gold is a store of value. And so people hope it goes up... But it's not like you can walk around with a bar of gold like it's 1822 and you slice off a little sliver."

Cuban pointed out that Bitcoin, as a digital asset, offers more practicality.

"You’re not going to carry around that bar of gold, but you can carry around your phone... It’s easier to transfer value with Bitcoin than gold," he added.

He also discussed Bitcoin's supply cap of 21 million coins, a feature he believes enhances its value proposition.

"That was part of the original plan... Right now, there are about 19.8 million Bitcoin out there," he explained.

The decentralized nature of Bitcoin means its scarcity is fixed, unlike gold, which requires mining and involves substantial costs. In the context of international transactions, Cuban stressed that cryptocurrencies provide a faster and cheaper alternative to traditional methods.

For instance, transferring $100 in Bitcoin or Ethereum is far more efficient than wiring cash through banks. The Shark Tank investor underscored this utility as one of crypto's core advantages, particularly in developing economies or cross-border exchanges.

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Mark Cuban on NFTs and Ethereum

Furthermore, Cuban delved into the potential of Ethereum and its smart contract capabilities. According to Cuban, Ethereum has transformative applications across industries, especially intellectual property. He highlighted how smart contracts enable creators to earn royalties indefinitely, a feature that could revolutionize fields like music publishing and textbook sales.

“For instance, if Jon Stewart writes a book... and it’s sold and resold, physical copies don’t earn royalties after the first sale. But with Ethereum and smart contracts, royalties can be paid on and on," Cuban explained.

This capability, while still in its early stages, has already been implemented on a small scale, with Cuban expecting broader adoption in the coming years.

NFTs (non-fungible tokens), built on Ethereum, are another area Cuban finds promising. By tokenizing assets like books, art, or even property deeds, NFTs provide a transparent and immutable record of ownership. Cuban stated that he views this as an innovation that could unlock significant value for creators while offering consumers greater convenience.

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Crypto's untapped potential and regulatory hurdles

Despite his optimism, the Shark Tank investor acknowledged the challenges facing cryptocurrency adoption. He noted that crypto has yet to experience its "Instagram moment," referring to the tipping point when an app becomes universally accepted.

Additionally, Cuban criticized regulatory approaches, particularly those by U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler. He argued that overly stringent regulations have driven innovation overseas.

"I had two companies that actually left the US to do their development because they could just sell to crypto enthusiasts and users in other countries," Cuban remarked.

He emphasized the importance of balanced regulation that fosters innovation while protecting consumers.

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Shark Tank airs every Friday at 8/7c on ABC.