Comparison between Bitcoin and Dogecoin: From the eyes of Mark Cuban

Key points

  • Bitcoin as a Salary
  • Bitcoin for Profit, Dogecoin for Purchase
  • Dogecoin Holdings
  • Rise in Crypto

Mark Cuban, the famous billionaire, who is also the owner of NBA team Dallas Mavericks, shared his opinion on why he believes Dogecoin is much suited for payments than Bitcoin. 

Mark Cuban, also shared information about his stance on cryptocurrencies, what he is expecting in the future and why there is no problem in accepting Dogecoin, as payment, for the sale of tickets and merchandise. 

Bitcoin as a Salary

In March 2021, Mavericks allowed the usage of Dogecoin as a medium of exchange for tickets. Cuban the owner of the club, himself, has a significant amount of Dogecoin holdings. Cuban has not used Bitcoin as a payment method, to pay the salaries of his players because the player will incur losses through fees charged for transaction and conversion. However, he advises all the payers to invest in cryptos. 

Bitcoin for Profit, Dogecoin for Purchase

Cuban explains that Bitcoin is used very little as a payment option; instead, Dogecoin has become a more preferred cryptocurrency as a medium of exchange. According to Cuban, the reason for this is because Bitcoin is viewed more as a store value, instead of using it as payment, making it a better alternative for gold. Cubans believe that people invest in Bitcoin, to hold currency, and make profits. On the other hand, Dogecoin is a cryptocurrency to be used as a medium of exchange.     

The fact is that the value of Dogecoin is far less than that of Bitcoins. Even the transaction cost in the case of Dogecoin is very low and the supply of Dogecoin is also unlimited, which in the case of Bitcoins is limited to 21 million. Undoubtedly, this is an argument in favor of DOGE, versus BTC, because you will lose less if the value rises in the future.

Dogecoin Holdings

Dogecoin has gained so much popularity that it is hard to ignore it. In terms of holdings of Dogecoin, there are only 25 wallets that consist of almost half of Dogecoins; out of these, there is a single wallet that has a holding of 30% of all Dogecoins. These wallets hence hold extreme pricing power and can regulate the price of Dogecoin. This has been criticized by many celebrities like ‘Elon Musk’, who has also urged all the wallet owners to reduce their concentration of wallets.     

Rise in Crypto

The Mavericks’ owner also stated that he anticipates a development similar to the birth of the Internet and believes that the driving factor behind it will be Ethereum. The Ethereum network offers security and decentralization to its users, allowing them to develop new products by implementing smart contracts.  

Disclaimer: The article is just to provide information and shouldn’t be considered as any financial advice. It is advisable to conduct thorough research before investing in any cryptocurrency. 

Photo by parveender on Pixabay