advertiser Billionaire Mark Cuban He is doubling his purchases of bitcoin and prefers to invest in it over gold, according to CNBC. Cuban said in remarks this week that he hopes the price of bitcoin will drop further so he can buy more.
Although financial experts consider gold a good way to protect the value of an investment portfolio from declining during periods of inflation, Cubans have called investors in the yellow metal foolish.
Although Cuban sees both gold and bitcoin as stores of value, he notes that the difference between the two lies in how they derive value.
He added: Gold derives its value from its relative scarcity and long history in the trade of goods and services, while Bitcoin and other cryptocurrencies are a relatively new payment method.
He continued: the majority Cryptocurrency It does not derive its value from the underlying entity, which always makes it vulnerable to unexpected price fluctuations.
Bitcoin has lost 60% of its value this year and is trading below $17,000 today, Wednesday, a level far from its 2021 high.
