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Investor and entrepreneur Mark Cuban has upped his cryptocurrency advocacy, telling Vanity Fair readers to put 10 percent of their money into it. In a video guide on “getting rich,” Cuban produced nine tips on maximizing potential wealth long-term. Among them in fifth place was advice to “invest up to 10 percent of savings” in so-called “high risk” assets, specifically Bitcoin and Ethereum. “If you’re a true adventurer and you really want to throw the Hail Mary, you might take 10 percent and put it in Bitcoin or Ethereum,” he said.
“But if you do that, you’ve got to pretend you’ve already lost your money.”
Cuban’s own perspective on Bitcoin has undergone a metamorphosis this year. Despite considering its price as a bubble, the billionaire subsequently invested in both an ICO and a dedicated cryptocurrency hedge fund.
While some skepticism remains, Cuban’s 10 percent figure is still higher than that advised by fellow investor Fred Wilson, who last week suggested a maximum of three to five percent crypto holdings for the “average” investor.
“I think that’s likely at the high end of what the average person should have, but I also think it’s not a ridiculous number for the average person to have,” he said discussing the topic.
“Many endowments, pension funds, etc allocate three to five percent of their portfolio to venture capital. They know (it’s) a risky asset but it has the potential for outsized returns.”