Mark Cuban urges investment in ‘useful’ cryptocurrencies

Billionaire Mark Cuban urged focusing on the value proposition when investing in crypto assets and filtering out projects around which there is “a lot of noise and little value.”

“Do you think there is a value proposition that consumers or businesses will use? If you think the answer is positive, and it provides enough growth, then you invest. If the answer is negative, you don’t.”

Bitcoin and Ethereum were among the topics Cuban touched on in the interview. He said the first cryptocurrency is an alternative to gold and a store of value, while the second features smart contracts that enable the creation of decentralized applications dapps.

Cuban also touched on market conditions and stressed that they “always overreact too sharply to news or anticipated events.” In his view, speculators and investors want to protect their profits, so they rush to get cash.

“But the reality is that whether rates rise to 3% or 4%, there aren’t many other good places to put your money […]. Although there may be a lull now, as we have seen in the past, people will return to the markets,” the billionaire concluded.

On February 21, the price of Bitcoin reached a local low near $37,200, after which it regained the uptrend. Amid geopolitical tensions, on the morning of February 22 quotes fell to $36,350, Ethereum fell to $2,500.

As of writing, the first cryptocurrency was around $37,620. Over the past seven days the asset declined 11.5% (CoinGecko).

Earlier, Cuban urged newcomers to pay attention to Ethereum. He said the second-largest cryptocurrency has the greatest investment potential.

ФРС analysts warned of risks of further Bitcoin price declines on expectations of a rate hike by the ФРС and geopolitical tensions.

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