Mark Cuban claims Dogecoin can gain some value due to growing utility

Billionaire Mark Cuban believes the Dogecoin meme cryptocurrency has the potential to turn into a viable currency if it has enough utility. This is a Cuban comment when sharing on Twitter about the difference between Bitcoin and gold while highlighting the value of Dogecoin.

The success of a cryptocurrency is to highlight its competitiveness

First, Cuban contends that the success of crypto comes from its competitiveness. Especially when compared to gold. In it, BTC is easy to trade/store / create with no delivery issues. BTC also enables the transfer of value locally and globally. But gold is unlikely to do this.

Accordingly, ETH is also one of the significant uses. ETH Smart Contracts are better, cheaper, faster at authenticating/buying/selling/delivering digital items than alternatives available. This makes it a viable currency and trading mechanism for all things digital. That’s powerful and will grow as applications are added.

ETH Smart Contracts for De-Fi are better at enabling depositing/saving/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 transactions.

Where Altcoin can offer rewards to their holders because they gain revenue for the more productive service they offer, they can succeed with enough users. It is very competitive. Barriers to entry are minimal. Which is a risk to all participants but rewards better solutions.

Mark Cuban claims Dogecoin can gain some value due to growing utility

According to Cuban, the meme cryptocurrency Dogecoin could potentially morph into a viable currency if it gains enough utility.

He stated:

The Dallas Mavericks, Cuban’s NBA team, began accepting Dogecoin in early March, paving the way for its broader merchant adoption. Since then, multiple major companies, including online electronics store Newegg started accepting the joke cryptocurrency. It now accounts for 10% of all BitPay transactions.

Dogecoin has an inflationary supply with roughly 5.2 million new coins entering into circulation every year. This is believed to be one of cryptocurrency’s main fundamental risks. The more coins enter the market, the harder it will be to sustain current price levels.

Cuban, however, sees Dogecoin’s infinite supply as its strength since it can gain traction as a digital currency instead of a store of value:

“Any asset that has inflation by definition is “infinite” but that doesn’t diminish it. It changes the utility from a store of value to potentially a digital currency.”

Disclaimer: Opinions expressed at AZCoin News are not investment advice. Investors should do their due diligence before making any high-risk investments in cryptocurrencies. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. AZCoin News does not recommend the buying or selling of any cryptocurrencies.

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