Dallas Mavericks owner Mark Cuban believes Dogecoin (DOGE) has the potential to become a useful currency if more companies adopt the meme cryptocurrency for their products and services.
What Happened: Cuban, a big advocate of Dogecoin and other cryptocurrencies, said on Twitter that the Dogecoin may hold its purchasing value better than a dollar in the bank on increasing adoption by companies.
“If interest rates skyrocket or the amount spent falls or stagnates, so will Doge. Yes, a joke is now legit,” Cuban tweeted.
The “Shark Tank” fame investor noted that Dogecoin’s annual inflation rate is set at five billion coins, which means for the cryptocurrency to continue gaining any significant value it needs to gain utility and users will need to use DOGE “for that utility.”
Crypto not just about being more productive and effective, but also no longer dependent on “trusted institutions” Ask PPP applicants how much they trust their big banks? Do you trust your health insurer?. Crypto is trustless and a better way to handle many transactions.
— Mark Cuban (@mcuban) May 2, 2021
See Also: How to Buy Dogecoin (DOGE)
Noting the utility of cryptocurrencies over traditional assets, the billionaire investor noted that Bitcoin (BTC) is easy to trade, store and create with no delivery issues, compared to gold, while it also enables the transfer of value locally as well as globally. Gold is a hassle, he added.
The NBA owner also believes Ethereum (ETH) smart contracts for decentralized finance (DeFi) are better at enabling depositing, saving and trading of financial instruments than banks.
“One is automated and trustless and near immediate. The other is dependent on buildings full of people who add cost and friction to the same transaction,” the billionaire investor said.
Why It Matters: Cuban has supported Dogecoin while also acknowledging the cryptocurrency’s joke origin. In March, the Dallas Mavericks began to accept Dogecoin as a means of payments for Mavs tickets and merchandise. Cuban revealed in April that Maverick’s sales in Dogecoin jumped up over 550% compared to the prior month.
Cuban believes that there is more likelihood of people using Dogecoin for making purchases compared to other cryptocurrencies like Bitcoin and Ethereum that have steep valuations.
Dogecoin is down 0.1% in the past 24 hours and is trading at $0.3806 at press time. The Shiba Inu-themed cryptocurrency hit an all-time high of $0.4377 on April 16 and has run up 7,949.40% since the year began.
Comparatively, Bitcoin’s year-to-date gains are a modest 98.7%. BTC traded 1.8% higher at $58,064.89.
Ethereum surpassed the psychologically crucial $3,000 mark late Sunday for the first time in its nearly six years of history. The cryptocurrency has risen 6.3% in the past 24 hours and is trading at 3,101.86.
Photo by Play Your Place on Flickr