As DOGE surged in recent days amid a broader crypto rally, one supporter is further hyping the meme coin with his Dogecoin price-boosting tweets. That's billionaire crypto investor Mark Cuban, of course.
As Bitcoin advocates continue to push the world's top cryptocurrency as the best option for mainstream payments, as well as a reliable hedge against inflation, Cuban said it isn't so.
In a Twitter exchange, the Dallas Mavericks owner insisted that Dogecoin is actually best suited for mainstream consumer payments and is even "better than a lottery ticket," emphasizing the meme token's performance over the past year.
Boosted by Cuban's comments, Dogecoin is trading 7.26 percent higher on Thursday, as per CoinMarketCap real-time figures.
Mark Cuban Says Bitcoin is 'Not and Never Will Be' an Inflation Hedge
Replying to a tweet by podcaster and entrepreneur Preston Pysh, a staunch Bitcoin supporter, Cuban further said BTC is "not and never will be" a hedge against inflation.
Now do a 1 year performance comparison. I said Doge was good for spending and better than a lottery ticket. You still think btc is an inflation hedge ? It’s not and never will be. Doge/btc is flat last 30 days. #maxisgonnamaxi #btcisdigitalgold— Mark Cuban (@mcuban) January 11, 2022
An inflation hedge is one asset that is seen to shore up returns amid declining purchasing power due to a currency's loss of value as a result of rising prices. These assets are typically expected to increase its value over time, such as gold. For some investors and academics, Bitcoin is likewise considered as an inflation hedge.
Professor Jeremy Siegel of Wharton School noted in a Business Insider report that the apex cryptocurrency stands out as a hedge against inflation, as digital tokens are millennial's new bullion.
Cuban, for his part, thinks that gold or Bitcoin could not help lessen the impact of increasing prices on an investor's portfolio. Considering them inflation hedges is nothing more than a marketing stunt, Cuban added. The U.S. continues to struggle with consumer inflation, seen as the highest since the early 1980s, amid a global surge in prices due to pandemic-caused labor and supply shortages.
Mark Cuban Among Pioneers in Accepting DOGE as Payment Option
The "Shark Tank" star also previously stated that Dogecoin would more likely be used by people for purchases than other cryptos, such as Bitcoin or Ethereum, due to their exorbitant valuations, Benzinga noted in a report.
Cuban's Dallas Mavericks had become one of the first entities that accepted Dogecoin as a payment option. Mavs fans can actually purchase merch or game tickets using the meme token. Other big conglomerates, such AMC Entertainment Holdings, followed Cuban's lead and also started accepting payments in Dogecoin.
Dogecoin co-founder Billy Markus backed Cuban's comments, saying that it was "so annoying" that "keyboard warriors," whom he described as "clowns," misrepresent the real picture about DOGE's potential.
You were always completely transparent about your feelings about doge - “it’s fun, people spend it, its for learning, don’t go crazy with it but it’s better than a lottery ticket” etc.— Shibetoshi Nakamoto (@BillyM2k) January 11, 2022
It’s so annoying when people misrepresent just so they can keyboard warrior. Clowns.
Cuban has always been bullish on cryptocurrencies, especially Ethereum, which has the most advantages as an asset being very close "to a true currency." Dogecoin, on the other hand, is a token that is "fun" and "educational," Cuban said.
As for Bitcoin, Cuban has expressed mixed feelings. While he commented in 2019 that bananas were easier to trade than Bitcoin, he later lightened his stance saying Bitcoin was easier to trade, store and create than gold. He also praised it as a good store of value and the crypto space's "safe haven."