"Too Much Concentration Of Wealth With BTC Whales" – Mark Cuban On Bitcoin vs. Dogecoin
Despite bitcoin fast proving to be a monetary standard and store of value, the Dallas Mavericks boss Mark Cuban who sees it as more of a digital version of gold than a currency is not a fan.
On Friday, a seemingly irate Bitcoiner sparked a spirited discussion pointing at the American Billionaire about a recently published piece on CNBC where Mark said that “dogecoin is the ‘strongest’ cryptocurrency as a medium of exchange.” The bitcoiner, known as Jason Williams was appalled at Cuban’s reasons for picking a coin that lacked a finite supply.
The tweet sparked a lot of interest from Bitcoin and Dogecoin fans alike moving into Saturday with Mark responding almost instantly in defense of his position that Doge was the best bet.
“Except it’s not infinite supply bro. It’s a declining inflation rate. There are 5.2b coins minted per year.” he replied.
With over 5.2B DOGE coins being minted per year, he stated that the coins would never stop being minted which puts Doge above Bitcoin in terms of usability. Since bitcoin’s total supply is capped at 21,000,000, this means that scarcity only works for a store of value like Bitcoin which is the reason the founding coin will always strive to be a currency.
He also disclosed that the fact that Bitcoin is too concentrated to a small number of whales who are holding it for the long term makes it difficult to achieve complete decentralization.
“With BTC you have too much concentration of wealth with whales. They can act like a Central Bank controlling how and where BTC is available and create deflation/inflation by how much they buy, how much they spend, how much they pay, and what they spend it on”.
One Bitcoiner was convinced that the meme coin also suffered the same problem with about 28% of the total supply held by a single person, the last time he had checked.
Mark quickly responded pointing that DOGE’s inflation rate compensated for that. He stated that Dogecoin’s new supply is distributed which puts it at a higher position compared to Bitcoin in terms of being a ubiquitous currency.
In a FAQ released by a member of the doge army in April, these claims give the impression of a highly concentrated asset.
“65% of all Dogecoins are kept in just 98 Wallets across the world. A single wallet has 28% of all Dogecoins, 5 wallets control 40% of the entire dogecoin supply. These 100 people control the entire $40 Billion dogecoin market. I like Doge but risky AF”
On Thursday, the billionaire investor, in a spirited effort to continue promoting Dogecoin declared that his club would offer sales with “special pricing” for those who pay with the meme coin.
Source: Read Full Article