Mark Cuban Says Bitcoin Is a ‘Better Buy’ Amid Stock Market Uncertainty — Is It Time To Invest?
Written by
Marc Guberti
Edited by
Amber Barkley
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Bitcoin has been getting more popular. Financial firms that previously rejected cryptocurrency have now embraced bitcoin with open arms.
More money experts are voicing their support for the cryptocurrency, too — including Mark Cuban. The business mogul has been bullish on cryptocurrencies for a while and, in an April post on X, referred to bitcoin as a better buying opportunity than stocks in the current market.
Here’s what investors should consider before investing in bitcoin.
Understand Your Motivation
Robert R. Johnson is a professor of finance at Creighton University’s Heider College of Business. He doesn’t agree with Cuban’s take on bitcoin and invites investors to understand their core motivation for buying any asset.
“The question you should ask yourself in committing funds to stocks or bitcoin is: What is your goal — your motivation? Are you investing, or are you speculating? My belief is that one cannot truly invest in cryptocurrencies; one can only speculate,” he explained.
If you believe bitcoin has long-term potential, then it may be worth an investment. However, if you are only buying bitcoin because it’s been going up lately and has delivered exceptional gains for long-term investors, you need a better reason to buy.
If you can’t come up with a good motivation to buy bitcoin, it’s best to stay on the sidelines.
Stocks Produce Earnings
Johnson also mentioned another benefit of stocks: You can look at their financials and assess a company’s performance against peers.
“Stocks are more enticing, because they produce something. In other words, if you buy a share of stock, you are entitled to a share of the earnings of a company. Bitcoin doesn’t produce anything,” he explained.
Johnson isn’t the only one with this take. David Materazzi, CEO of Galileo FX, is also skeptical of bitcoin. He views it as a collectible that produces nothing and has no earnings, dividends or output.
He recommended looking at stocks instead of crypto, while explaining the benefits of stock buybacks: “Buybacks increase your stake in a real business. Same earnings, fewer shares. You own more. That’s value,” he said. “Bitcoin has no earnings. No board. No cash. Nothing gets returned to holders. Nothing compounds. It just sits there. Price moves only if someone else wants in.”
Lower Interest Rates Could Serve as a Catalyst
Bitcoin could receive a nice boost if the Federal Reserve decides to cut rates. Inflation has remained relatively low for a few months despite tariffs, and if this trend continues, the Fed may soon reduce rates.
However, lower interest rates aren’t exclusively bullish for bitcoin. They effect the entire stock market.
“Bitcoin reacts to money printing, regulation and hype,” Materazzi said. “Stocks respond to performance. Earnings growth, capital investment, buybacks, execution. That’s the gap.”
In Johnson’s book “Invest With the Fed,” he and his co-authors, Gerald Jensen and Luis Garcia-Feijoo, reviewed data from 1966 to 2023 and determined the most promising sectors when the Fed lowers rates.
“The best-performing sectors in a falling interest rate environment were automobiles (30.9%), apparel (27.3%) and retail (25.8%),” he explained. “In addition, small stocks outperformed large stocks during falling interest rate environments. The smallest quintile of stocks returned 30.1% during falling rate environments, while the largest quintile returned 15.6%.”
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