While some may believe that the surging crypto prices primarily driven by the ongoing global pandemic are set for a drastic downfall eventually, harkening back to the infamous “Crypto Winter” even back in 2018, Mark Cuban thinks otherwise.
As per the Dallas Mavericks owner and now avid crypto proponent, the sheer number of individuals who have since invested in cryptocurrencies has swelled so much that investors would have to buy back in even before its prices could plummet.
He argued that more than 2 million people are now actively using the DeFi space, which, in turn, takes a whole chunk of money away from the whole banking system. Cuban explains that when converting to Ethereum’s stablecoin, DAI, people could already garner 4% to 10%. Say that something goes wrong and such collapsed by 50% to 75%, his or her savings rate could still make up to .02%. According to Cuban, people wouldn’t lose their capital on Ethereum unless they make stupid decisions.
With that being said, Cuban’s kind words towards the second-largest crypto do not end there. In an entirely separate discussion, Cuban went ahead and stated that the price ceiling for ETH is currently uncapped. He then said that ETH has a better long-term value than that of Bitcoin (BTC).
The Dallas Mavericks owner boldly claimed that BTC is at a higher risk of a pullback if ever there happens because people speculate on it so much, evidenced by the overwhelming amounts of dollars committed on its derivatives. On the other hand, ETH offers more utility, and thus, could prove much more stable than BTC down the line, says Cuban.