Mark Cuban likens crypto to Internet Stock Bubble! Mark Cuban likens crypto to internet stock bubble phenomena after Bitcoin fell more than 12% in a day – with Ether falling 23%. Crypto bears were not surprised.
As Bitcoin hit a record high of over $41,000 last Friday, those wary of it warned that it may crash like it did in 2017 and likened it to a market bubble. Mark Cuban is one of those individuals.
Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY. I think btc, eth , a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting and thrived, like AMZN, EBay, and Priceline. Many won’t
— Mark Cuban (@mcuban) January 11, 2021
“As during the dot-com bubble, ‘the experts’ try to justify whatever the pricing of the day is,” Cuban added.
Cuban, however, did admit that there are some cryptos like Bitcoin, Ether, and others that will survive, just like some companies built during the dot-com era survived the bubble bursting.
Cuban has previously invested in businesses built on cryptocurrency, but he has frequently warned against it, calling bitcoin a “gamble”.
Some in favor of Bitcoin and cryptocurrency say that they act as a hedge against inflation and the US dollar – that Bitcoin and crypto will survive an economic/infrastructure collapse, and therefore can be comparable to gold. Since the supply of Bitcoin is limited by its design, crypto bulls say that Bitcoin’s price will increase as demand increases.
Cuban says, in that regard, that crypto is, like gold, driven by supply and demand.
As during the dot-com bubble “the experts” try to justify whatever the pricing of the day is. Crypto , much like gold , is a supply and demand driven All the narratives about debasement, fiat, etc are just sales pitches. The biggest sales pitch is scarcity vs demand. That’s it
— Mark Cuban (@mcuban) January 11, 2021
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