Billionaire Shark Tank investor Mark Cuban (Mark Cuban) believes that cryptocurrencies are like the Internet bubble. He said that Bitcoin and some other cryptocurrencies are similar to those Internet company stocks that survived bubble bursts and booms, such as Amazon and eBay.
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After the price of cryptocurrencies plummeted, Shark Tank star Mark Cuban compared his feelings with the Bitcoin bubble and Monday’s Internet bubble. The owner of the Dallas Mavericks of the National Basketball Association (NBA) wrote on Twitter:
Looking at cryptocurrency trading is like the Internet stock bubble. exactly. I think BTC, ETH, and others will be similar to those established in the dot-com bubble era and survived bubble bursts and booms like AMZN, Ebay and Priceline. Many people will not.
“Along the way, a lot of wealth will be lost. We will find out who has stomachs to eat and who doesn’t. My advice? Learn how to hedge.
At the time of writing, his tweets have received 895 comments. It has also been reposted more than 1.7K times and liked more than 10,800 times. Some people on Twitter believe that Cuba’s comments are good for BTC and ETH.
Among the commentators is Tyler Winklevoss, the co-founder of Gemini cryptocurrency exchange, who believes that cryptocurrencies are not like stocks. “Wrong. Cryptocurrencies like BTC and ETH are all networks. They are definitely not company stocks. They are like having the early Internet. Comparing them with stocks is a comparison of apples and oranges.” He told Cuba. After discussing Bitcoin as a store of value, the Shark Tank star reiterated his position:
I said that BTC is like gold. It is a store of value and has no other purpose. At least I can eat bananas.
Peter Schiff, the gold bug, said to Cuba: “Mark, you can’t store what you don’t have. Gold is a store of value because you want to store gold for future use as metal. Jewelers will need gold, computers Chipmakers will need gold, dentists, etc. But no one really needs Bitcoin now, so no one will need it in the future.
In a follow-up tweet, Cuban wrote:
Just like during the Internet bubble, “experts” tried to justify the current prices. Cryptocurrency is like gold, driven by supply and demand. All narratives about devaluation, fiat currency, etc. are just sales promotion. The biggest sales promotion is scarcity and demand. That’s it.
The Gemini co-founder disagrees. “The narrative about legal devaluation is true. Have you seen the Fed’s balance sheet recently? What is the supply and demand relationship? The value of the franchise of land, Picasso or Dallas Mavericks is also determined by supply and demand.” He told the Cuban.
Do you agree with Mark Cuban’s views on Bitcoin? Let us know in the comments section below.
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