Why Mark Cuban just bought more Dogecoin

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Dogecoin (DOGE) has had some interesting months. The popular cryptocurrency, originally conceived as a joke, has started to get serious. He reformed the Dogecoin Foundation, a non-profit organization that aims to protect the brand and provide strategic direction. It is also working on a series of technical upgrades and even plans to hire full-time staff.

But interestingly, that’s not why billionaire investor and cryptocurrency enthusiast Mark Cuban just bought more DOGE.

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Cuban increased his Dogecoin investment because it’s fun

The owner of the Dallas Mavericks is no stranger to the Dogecoin paddling. He bought DOGE for his son in January because he sees it as a fun and educational way to learn to invest.

But he never saw it as a serious addition to his wallet. In a recent interview with Fox Business, Cuban pointed out, “I never told anyone it was a good investment. He told the show he bought a little more for fun, increasing his Dogecoin holdings of $ 500 to $ 1,500.

It’s a small change for the man who told Delphi Digital in March that he could spend $ 50,000 on an early stage coin if he thinks it’s a decent idea. At this point, he said he only had about ten chips.

People pay with DOGE

Cuban makes a clear distinction between, for example, Bitcoin (BTC) and Dogecoin. He told Fox: “Not many people pay in Bitcoin because it’s such a valuable asset.” He explained that people see it as a store of value and they want to wait for the price to rise.

In contrast, he says a lot of Mavericks fans buy tickets and merchandise with Dogecoin. “We sell thousands and thousands of dollars a month off season, and once the season starts, I expect that to happen every week in Dogecoin.” The reason? Cuban says Dogecoin is easy to spend and doesn’t like it so much that people want to keep it forever. He tweeted in August that it was “the way people pay.”

Cuban is still a big fan of smart contracts

Mark Cuban has long been a huge fan of Ethereum’s (ETH) smart contract capabilities. He believes they could provide fertile ground for many commercial applications. Smart contracts are tiny pieces of code that live on the blockchain, and Cuban says they could have a significant impact, first on the financial sector, then on other sectors.

The Shark Tank star claims that smart contract developments are similar to the early days of the internet, when we went from analog to digital. It opens the door to a host of new possibilities. For example, Cuban said, “I invest in things like decentralized insurance applications, decentralized ways of distributing NFTs, which enable things like 3D print files, manuals – so many different applications. . “

Bitcoin, Dogecoin, and Ethereum are all available in top cryptocurrency apps and exchanges. But don’t blindly follow Cuba’s lead: do your own research and make sure your crypto investments match your overall investment strategy. And don’t buy crypto with money you can’t afford to lose.

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