Why Mark Cuban Likes Cryptocurrency Polygon

Polygon's technology can solve some of Ethereum's congestion problems.

Polygon (MATIC) is one of the few cryptocurrencies that continued its performance during the recent crypto slump.

Originally called Matic Network, the India-based cryptocurrency was founded in 2017 with a mission to solve scalability problems in the Ethereum network. Ethereum is the second largest cryptocurrency and serves as a platform for various things including decentralized applications (dapps) and other digital currencies.

However, the Ethereum network is congested and users face high transaction fees. An upgrade is in the works to address these issues. The switch to Ethereum 2.0 (Eth2) will take time, however. And with 80% of the decentralized application market using Ethereum, many developers are looking for other solutions.

This is where polygon comes in. It sits on the Ethereum blockchain to enable faster and cheaper transactions.

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Mark Cuban's polygon investment

Mark Cuban is a huge fan of cryptocurrencies and has invested in a number of crypto companies. According to Cuban's website, "Polygon is the first well-structured, easy-to-use platform for scaling and infrastructure development for Ethereum."

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We don't know how much he invested in the company, but his support is a big boost for Polygon. Cuban told Cointelegraph he was an active user and said he wanted to incorporate Polygon into its non-fungible token (NFT) gallery, Lazy.com. NFTs are a form of digital collectibles that use programmable blockchains like Ethereum.

One thing that sets Polygon apart is that it can process a lot more transactions per second than Ethereum, and it does so at a fraction of the cost. It uses an additional layer it calls the sidechain that works in parallel with existing blockchain technology to improve its performance.

Should you follow Mark Cuban's example?

The price of Polygon has increased over 10,000% since the beginning of this year. Crypto prices have risen across the board since January, but that's a huge leap. With a market capitalization of over $ 11 billion, it is currently the 15th largest cryptocurrency according to CoinMarketCap data.

Such a big jump is impressive, but you also have to consider Polygon's long-term potential. The price could continue to rise, especially as more and more people are realizing what the technology is capable of. But while various crypto analysts are bullish on the price, buying Polygon probably isn't a good move if you're looking for short-term returns of this magnitude.

It's also worth thinking about what will happen when Ethereum fully migrates to the much-needed Eth2. It does this in stages, and at the moment it looks like the platform won't fully resolve its scalability issues until 2022. Assuming Ethereum can be updated easily, Polygon's solutions may not be so necessary in a year.

In theory, the utility of Polygon extends beyond Ethereum. It can be layered on any blockchain for speed and, importantly, it also allows different platforms to work together. But Polygon isn't the only cryptocurrency developing this functionality, so there's a chance someone else might come up with a better solution as well.

More generally speaking, when buying a cryptocurrency you need to be prepared to enter a relatively untested market. We don't yet know what will happen to regulation in the US, and with so much hype and so complex technology, it's hard to be sure which cryptocurrencies will reach their potential.

If you decide to buy, several of the leading US cryptocurrency exchanges will trade Polygon.

One thing we all learned in the last month is that you need to be prepared for volatility. Only invest money you can afford to lose, and don't jump in just because you know an influencer like Mark Cuban. He is clearly a successful investor with a good understanding of the crypto space. But only you know your risk tolerance and financial goals, so it is important to do your own research and make your own decisions.

https://thedailytradingnews.com/why-mark-cuban-likes-cryptocurrency-polygon/