Although Bitcoin is one of the newest forms of currency, billionaire investor Mark Cuban says that many investors treat it the same way they treat one of the oldest assets: "gold."

Cuban added during an interview with *Wired* last week: "The interest in gold is not based on supply and demand in the jewelry market; people see it as an option in case the economy faces a crisis or something bad happens."

Many Bitcoin holders—Bitcoin being the world's largest cryptocurrency—view it as a "great store of value," according to Cuban. During real economic crises, Bitcoin may have an added advantage, as reported by *CNBC Make It*, which *Al Arabiya Business* reviewed.

Cuban continued: "People see Bitcoin as an improved version of gold, and I support that view."

How Can Gold and Bitcoin Act as Stores of Value?

Gold investors often use the term "hedge," hoping that gold will retain its value during times of crisis, adding it to their investment portfolios based on its historical reputation for withstanding inflation. However, gold’s record in this regard is unstable.

In the most extreme scenario Cuban mentions, such as the collapse of the U.S. dollar, gold’s long-standing reputation as a valuable currency might protect its holder from bankruptcy. However, gold faces practical issues. It’s heavy, easy to steal, and difficult to use for exchanging goods and services.

Cuban says: "People are not going to walk around carrying gold bars. What are you going to do with them? Are you going to cut a small piece off?"

In contrast, Bitcoin is more portable and easier to use for small transactions, giving it an advantage over gold. Cuban adds that Bitcoin is easier to buy and sell, can be divided into smaller units, used to purchase goods, and transferred internationally. He believes it holds more value than gold.

The Difference Between Gold and Bitcoin for Investors

The vast majority of investors holding gold or Bitcoin are not necessarily preparing for an economic disaster.

The main advantage of gold is that its price tends to move differently from other major assets such as stocks and bonds. During market disruptions, many investors tend to shed riskier assets and turn to gold as a safe haven, causing its price to rise.

Bitcoin, on the other hand, is one of the most volatile and risky assets. Its price often moves in parallel with the stock market but to a much greater degree of volatility.

Financial expert Suze Orman states: "As younger generations' incomes increase and they mature, Bitcoin will become one of their favorite investment options, which will drive its value up."

However, since Bitcoin’s price depends on investor demand, investing in it carries significant risk. Financial experts advise not to invest more than what one can afford to lose.

As for Cuban, who has not disclosed the amount of Bitcoin he owns, it seems he holds a significant amount. He said during the interview: "I have enough Bitcoin to make me really hope the price goes up."