Mr. Cuban believes that Bitcoin and Ethereum will be able to survive the effect of the current bubble. He recommends paying outstanding debts before buying cryptocurrencies.
American billionaire businessman Mark Cuban owns the NBA’s Dallas Mavericks. In recent days, he once again attacked Bitcoin and gold. He stated that the law of supply and demand is the only thing that drives the price of the cryptocurrency and the precious metal.
The executive says that experts are trying to justify the day’s price of cryptocurrencies, as happened during the dot-com bubble. In his opinion, “all narratives about fiat currency debasement are just plots of sales.” He adds that “scarcity is a bigger driver of sales than demand.” One of his followers on Twitter explains that the narratives from the 1990s about the debasement of fiat money are true. This user says that “supply and demand also determine the value of the land, a Picasso painting or the Dallas Mavericks franchise.” Cuban replies that they both agree that “supply and demand are the only things that give value to Bitcoin (BTC).”
Bitcoin Is Similar to Gold
Last year, the US businessman said he hates gold as an investment and considers that “Bitcoin is fundamentally similar to gold.” He thinks that both assets are “collectibles and their value is based on supply and demand.” However, he considers it positive that “the supply of Bitcoin is finite and will never grow.”
Furthermore, Cuban believes that Bitcoin and Ethereum, among other cryptocurrencies, will survive the effect of the “current bubble.” He finds them analogous to projects built during the Internet business era. “Some of them thrived, like Amazon, EBay, and Priceline, while others went bankrupt and did not survive,” he notes.
Another of Cuban’s followers says that the increase in Bitcoin’s price in US dollars is due to the demand for it. “I also believe that the narrative about fiat currency debasement is wrong. People buy Bitcoin because it has objectives and lower transportation costs, which happens in a low-inflation environment,” he says.
In this regard, the businessman responds that “this is a great point that I had not seen before. However, once you own Bitcoin, the cost of owning it is almost zero, compared to keeping it in a bank. Now there is the possibility of making a profit with decentralized finance (Defi), which includes digital assets”. The businessman tells one of his followers that he must first “assume a debt that [he] can pay, and then invest in cryptocurrencies.” He also said that he would be “a fool [as] there is a 99% chance of losing everything.” He explained that “personal disaster stories are based on leverage.”
Bitcoin Is Not a Safeguard against Apocalyptic Scenarios
Last year, Cuban stated that “Bitcoin is not a safeguard against apocalyptic scenarios.”
“Although Bitcoin fans may claim that it is a hedge against Doomsday scenarios, it is not. Countries will take steps to protect their fiat currencies and their ability to tax. For that reason, the more people believe that it is a store of value, the more risk of government intervention there will be,” he argued. Last December 8th, Cuban wrote an e-mail saying that he has not changed his opinion on the pioneering cryptocurrency. He says that Bitcoin “is a store of value like gold”, but he considers it to be more of a religion than a solution to any problem.
By Willmen Blanco
