Warning: Mark Cuban compares cryptocurrencies to Dot.com bubble – but Bitcoin will flourish | message
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Mark Cuban: Cryptocurrencies are like dot.com bubble
Only supply and demand count
Some cyber currencies would continue to thrive
Bitcoin has had an incredible rally in recent months and more than tripled its price in the past year. Shortly after the turn of the year, it even climbed to a record high of almost $ 42,000. Mainly thanks to this enormous price increase, the total value of all currently existing digital currencies was able to climb above the one trillion US dollar mark for the first time – at least temporarily.
But in the meantime there has already been a clear setback. Bitcoin lost over 12 percent of its value on Monday, January 18th, 2021 alone, and the daily minus for Ethereum was as much as 23 percent.
Mark Cuban is reminiscent of Dot.com bubble
This setback did not come as a surprise to crypto bonds. For example, exchange expert Mark Cuban, who is also known as the owner of the professional basketball team Dallas Mavericks, warned in a tweet on January 11th that crypto trading was “exactly like the Dot.com bubble”. As is well known, this burst in 2000.
Just like during the Dot.com bubble, experts would try to find a justification for the current price level. But Cuban only sees it as a “sales pitch”. Because crypto courses are only moved by supply and demand. – Trade Bitcoin with Plus 500 – that’s how it works. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should carefully consider whether you can afford to take the high risk of losing your money. – That is why the strongest purchase argument is also “scarcity vs. demand”.
Changed your opinion on Bitcoin?
In the past, too, the American, who is a welcome guest on TV shows, has repeatedly expressed himself very critically about Kryto currencies. Many people remembered, as he explained in an interview, that he “would rather have bananas than Bitcoin” because bananas still have an intrinsic value.
But now the 62-year-old hit a different note. Because, as he also explained in his tweet, he assumes that Bitcoin, Ethereum and a few other digital currencies will survive the bursting of the bubble and then flourish – just as Amazon and eBay stocks did after the Dot.com Bubble succeeded. If you consider that Amazon now has a market capitalization of over $ 1.5 trillion and Jeff Bezos, the founder of the online shipping giant, is the second richest person in the world according to the Bloomberg Billionaires Index, then that sounds very good very promising.
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Mark Cuban warns that many fortunes will be created and lost along this path. That is why the advice of the stock market expert is “learn hedging”. These are hedging transactions in which investors invest in opposing positions in order to offset possible losses from the first position with gains from the second. However, this is a complex matter and not for the indignant.
Finanzen.net editorial team
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