(JustPatriots.com)- In the midst of a rollercoaster week for cryptocurrency, billionaire owner of the Dallas Mavericks, Mark Cuban, made a bold prediction about the future of Dogecoin, what has become one of the biggest crypto sensations to hit the market.
Interviewed for the Ethereal Virtual Summit on May 6, Cuban said he expects Dogecoin to hit $1 soon and become stable.
Cuban said, “I kind of think that it might level off at $1 and become somewhat like a stablecoin, where you can use it, you can save it, it’s going to stay pegged. Now, for a while it will go down to 60, to 70, to 80 [cents]. But over the long haul, I think it might peg itself at $1, that’s my guess. But it’s only a guess.”
Cuban expanded on his theory saying that he believes Dogecoin’s steady valuation will be buoyed by its regular increase in supply, unlike Bitcoin.
“I didn’t even realize this at the beginning, when I first started talking about it… that there’s a limit of 5.2 billion Dogecoins being minted every year. And given the number of billions that are already out there, that’s effectively a declining inflation rate, right, there’s a limit to the amount of inflation for Dogecoin. And that’s a positive. It’s almost a digital equivalent, whether we like it or not, of fiat. Because you can own it, you know the exact inflation rate, which is declining, and it’s only 5.2 billion units a year.”
Not only that, Cuban believes that Dogecoin may actually become a real means of currency, and not simply a vehicle for investment.
“DOGE is becoming more of a utility in terms of as a currency. You know, you can go to the Mavs shop and you can spend it—and we sell a lot more in Dogecoin than we do in Ethereum or Bitcoin… Now, the challenge with Dogecoin, and people are going to get mad at me for this, is if it gets too expensive. Then it starts to fall into that Bitcoin territory where, ‘Wow, I’ve invested a lot of money in this, I really need it to go up.’”
Dogecoin first made news this week when Tesla founder and billionaire Elon Musk, a vocal advocate of the cryptocurrency, was announced as the host for “Saturday Night Live.” That set prices soaring 70%. But leading up to Musk’s appearance on Saturday, Dogecoin began a fall that was only accelerated by Tusk’s contention on air that the currency was “a hustle.” That put the currency into freefall, leaving it far in the negative for the weekend.