Billionaire Shark Tank investor Mark Cuban sees cryptocurrency “exactly” as the dot-com bubble. He says that bitcoin and some other cryptocurrencies are analogous to dot-com stocks, like Amazon and Ebay, which survived the bubble burst and prospered.
Mark Cuban compares cryptography to the dot-com bubble
Shark Tank star Mark Cuban compared what he feels is a bitcoin bubble to the dot-com bubble on Monday after the cryptocurrency price plummeted. The owner of the Dallas Mavericks of the National Basketball Association (NBA) tweeted:
Watching the cryptocurrency trade is just like the Internet stock bubble. Exactly. I think BTC, ETH and a few others will be analogous to those that were built during the dot-com era, survived the bubble burst and prospered, like AMZN, Ebay and Priceline. Many will not.
“Along the way, many fortunes will be made and lost and we find out who has the stomach to fight and who doesn’t. My advice? Learn how to protect yourself ”, he elaborated.
At the time of writing, your tweet has accumulated 895 comments. It was also retweeted over 1,700 times and enjoyed more than 10,800 times. Several people on Twitter consider Cuban’s comment optimistic for BTC and ETH.
Among the commentators was Tyler Winklevoss, co-founder of the Gemini cryptocurrency exchange, who argued that cryptocurrencies are not like stocks. “Wrong. Cryptos like BTC and ETH are networks, they are definitely not stocks or shares of a company. They are like having a piece of the primitive Internet. Comparing them to stocks is a comparison of apples to oranges,” he explained to Cuban. 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 with no other use. At least I can eat bananas.
The gold bug Peter Schiff intruded, saying to the Cuban: “Mark, you can’t store what you don’t have. Gold is a store of value, as you are storing gold for future use as a metal. Jewelers will need gold, computer chip makers will need gold, dentists, etc. But nobody really needs bitcoin now, so nobody will need it in the future. “
In a follow-up tweet, Cuban wrote:
As during the dot-com bubble, “experts” try to justify whatever the price of the day. Cryptography, like gold, is driven by supply and demand. All narratives about debasement, decree, etc. they are just selling points. The biggest sales pitch is scarcity vs. demand. That’s it.
The Gemini co-founder disagreed. “The narratives about the degradation of the fiat are facts. Have you looked at the Fed’s balance sheet recently? What is the problem with supply and demand? The value of the land, a Picasso or the Dallas Mavericks franchise is also determined by supply and demand, ”he told Cuban.
Do you agree with Mark Cuban about bitcoin? Let us know in the comments section below.
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