He believes that Bitcoin and Ethereum will survive the effect of the current bubble.
He advises paying outstanding debts before investing in cryptocurrencies, so as not to lose everything.
The owner of the Dallas Mavericks, Mark Cuban, again lashes out at bitcoin and gold, saying that the price of cryptocurrency and precious metal are only driven by the law of supply and demand.
On his Twitter account, the billionaire comments on how, as happened during the dot com bubble, experts try to justify the price of the day of cryptocurrencies, whose value, like gold, is driven by supply and demand. «All the narratives about the fiat degradation, are only plots of sales. The biggest sales driver is scarcity versus demand. That’s all, “he says.
One of the followers on the social network points out that the narratives of the 90s around the degradation of fiat money are facts. What about supply and demand? The value of the land, a Picasso or the Dallas Mavericks franchise is also determined by supply and demand.«, Expresses. Faced with this, Cuban answers as follows: “You agree with my point of view. Supply and demand is the only thing that gives value to Bitcoin (BTC). »
On August 10, 2020, the American businessman said in an interview that he hates gold as an investment and considers that bitcoin is fundamentally similar to gold.
They are both collectibles. The value is based on supply and demand. And the good news about bitcoin is that there is a finite supply that will never be created.
Mark Cuban, US Investor.
On the other hand, Cuban also believes that Bitcoin, Ethereum, among some other cryptocurrencies, will survive the effect of the “current bubble.” Think that they will be analogous to the projects that were built during the era of Internet companies, in which some flourished, such as Amazon, EBay and Priceline, while others exploded and did not survive. “Many crypto assets won’t either.”
In his thread, the billionaire observes that many fortunes are made and lost. “We will find out who has the stomach to support himself and who does not. My advice? Learn to set, which means to adjust to a specific point of work.
Another of the followers indicates to Cuban that the increase in dollars (of bitcoin) is a consequence of his demand. “I also believe that the fiat degradation narrative is incorrect. Bitcoin is bought because it has objectives and lower transport costs, and this is happening in an environment of low inflation, “he says.
To the above, the businessman responds the following: «This is a great point that I had not seen before. But once you own it (bitcoin), the cost of owning it is almost zero, compared to keeping it in a bank. Now there is also an opportunity to profit with decentralized finance that includes digital assets (Defi).
Finally, the businessman advises one of his supporters. Let me add one thing, if you are stopping taking on a debt you can pay to invest in cryptocurrencies or digital assets, you are a FOOL and there is a 99% chance that you will lose EVERYTHING. Stories of personal disasters are based on leverage, “he said.
Bitcoin is not a safeguard against apocalyptic scenarios
As CriptoNoticias reported on December 19, 2020, for Cuban bitcoin is not a safeguard against apocalyptic scenarios
“No matter how much bitcoin fans want to pretend it is hedge against Doomsday scenarios, it is not. Countries will take steps to protect their currencies and their ability to tax, so the more people believe that this is a store of value, the more risk of government intervention they face, “he said.
He added in an email dated December 8 of last year. “My thoughts haven’t changed” on bitcoin today. “It is a reserve of value like gold, which is more religion than a solution to any problem.”