Cuban advised betting on innovation, considering that stocks and cryptocurrencies, among other businesses, would always find a market and succeed. He admitted that tough times lie ahead for most financial markets, but it will be all right if the crypto space produces new technology.
American investor and businessman Mark Cuban is the Dallas Mavericks owner and an Ethereum investor. The billionaire recently said that the drop in cryptocurrencies highlights Warren Buffett´s wisdom.
Warren Edward Buffett is a 91-year-old American investor and businessman considered one of the largest investors worldwide. He is also the largest shareholder, chairman, and CEO of Berkshire Hathaway, a company where he became a majority shareholder in the mid-1960s.
Curiously, the community knows him as the Oracle of Omaha as they closely follow his investment choices and market feedback. Additionally, he lives and works in that city in Nebraska.
The Market Crash Reminds Cuban of Advice from Warren Buffett
Mark Cuban recalled a piece of advice by Warren Buffett for the collapse of cryptocurrencies. The latter said anyone could see who was swimming naked when the tide went out.
Warren Buffett, who has long criticized cryptocurrencies, predicted in 2018 that they would come to an alarming end. He also stated that Berkshire Hathaway would never invest in them.
In an interview with Fortune magazine, Cuban expressed what he saw as incorrect business models in some crypto projects.
Concerning stocks and cryptocurrencies, he pointed out that companies supported by cheap and easy money but with no reasonable business prospects would disappear.
Referring to the proverb by Warren Buffett, Terra, Celsius Network, and Three Arrows Capital seem to have been swimming naked. Terra (now Terra Classic) crashed by mid-May, Celsius Network has struggled to stay solvent, and Three Arrows Capital (3AC) has faced liquidation.
However, Cuban said that it was advisable to bet on innovative applications and technologies launched during a bearish tide. The investor considers that stocks and cryptocurrencies, among other businesses, would always find a market and succeed.
Warren Buffett Gives Some Reasons Not to Invest in Bitcoin
Warren Buffett gave three reasons why he and his company never invested in Bitcoin. He said that the value of Bitcoin comes from optimism, it is not a store-of-value asset, and he does not understand it.
He stressed that he would only invest in what he could touch, like precious metals, and understand well. He considers that something intangible, like crypto assets, does not have a real value.
To conclude, cryptocurrency investor Mark Cuban admitted that tough times lie ahead for most financial markets. However, he stated it would be if the crypto space produced new technology.
Bitcoin is trading at around USD 20,308 and has accumulated a 0.6% gain over the last 24 hours. While its daily trading volume is above USD 22.54 billion, its market capitalization is around USD 387.55 billion, according to CoinGecko.
By Alexander Salazar
