Why Mark Cuban Sees Dogecoin as the Strongest Cryptocurrency

For starters, people actually spend it

The Dallas Mavericks have seen a lot of Dogecoin transactions since it began accepting the cryptocurrency earlier this year. Team owner Mark Cuban thinks that of all the popular cryptos, Dogecoin is the best as a medium of exchange.

While popular crypto Bitcoin was created as a true store of digital value to hedge against the success of government-controlled fiat currencies, Dogecoin was created as a joke. Its creators, software engineers Billy Markus and Jackson Palmer, parlayed the shiba inu “Doge” meme into a cryptocurrency. It took three hours to make.

Dogecoin was worth slivers of a penny until early 2021 when it finally reached a penny. Since then, it has risen to as much as 74 cents — purely off of internet hype that fueled the entire crypto market.

Its rise has attracted the attention of billionaires such as Cuban and Elon Musk. While Musk has yet to allow Tesla customers to use Dogecoin for purchases, Cuban is giving the coin holders plenty of opportunities to spend with the Mavericks.

Cuban recently announced that Dogecoin users would soon get special pricing on merchandise sales.

The reason Cuban likes Dogecoin is because people actually use it to buy goods and services. People use other cryptos like Bitcoin and Ethereum, too. But Cuban sees those larger cryptos, namely Bitcoin, as more of a store of value.

In other words, people buy and hold Bitcoin — seeing it as a long-term investment more than a day-to-day currency. Dogecoin doesn’t have the same case as a store of value — billions of Dogecoins are injected into the market every year. Bitcoin has a finite supply of 21 million total coins that will exist in the market.

Dogecoin also doesn’t have the same technology behind it. As a long-term investment, most look to the more proven cryptos.

Dogecoin is more fun than anything, which is why it’s better to spend it than to hold it. It’s volatile, like all cryptocurrencies. But unlike Bitcoin and Ethereum, there’s no grand scheme in it becoming the world’s decentralized currency of the future.

Cuban invests in Dogecoin, as well as Bitcoin and other altcoins, with his 11-year-old son. It’s fun, and perhaps the Mavericks’ involvement with the coin is promotional more than anything. Why not use some of your crypto gains to buy some Mavs gear?

As a medium of exchange, perhaps Dogecoin does reign supreme. Maybe other large businesses will see it that way, too, and give Doge holders a chance to go buck wild in their online stores.

Dogecoin’s main benefit is that it is tied to larger, more respected cryptocurrencies. When Bitcoin starts moving higher, for example, Doge does, too. Doge investors want to turn cents into dollars.

So while Doge doesn’t have a great case to be the best crypto investment, there’s still a decent case for it to return some profits.

What’s the harm in throwing down a few bucks and seeing what happens?

Source: https://medium.datadriveninvestor.com/why-mark-cuban-sees-dogecoin-as-the-strongest-cryptocurrency-c96e0e0e1330?source=rss——-8—————–cryptocurrency