Mark Cuban, the billionaire philanthropist who made a fortune during the “Dot-com bubble” or the “Dot-com boom” has now categorized Bitcoin as a bubble. A notable personality, one of the “Sharks” in the Shark Tank TV show expressed his opinion over a series of tweets.
According to Cuban, Bitcoin is in a bubble which is waiting to burst. His comments come at the time when the popular cryptocurrency’s value is at an all-time high of about $2850. The Twitter discussion seems to have been triggered by invitation to be part of a podcast on Bitcoin and cryptocurrencies. In response to the request, Cuban replied,
“I think it’s [Bitcoin and cryptocurrencies] bubble. I just don’t know when or how much it corrects. When everyone is bragging about how easy they are making $ [money] = bubble.”
However, Mark Cuban’s comment received a mixed response from the Twitterati with some asking him whether he has ever invested in cryptocurrencies at all. While the meteoric Bitcoin price rise may as well be a bubble, especially with the scalability concern’s plaguing the network, there are other cryptocurrencies which have practical, real-world applications. Many of these cryptocurrencies are not just speculative assets but also a mode of communication for various blockchain applications. As the demand for such applications increase, so does the demand for these tokens, which will, in turn, drive their market price.
“I’m not questioning the value. I’m questioning valuation.”
Cuban may have a fair point about the uncertainty and volatility associated with cryptoassets, but whether his opinion about the digital currency is valid or not, is something the community could continue arguing about. One can also draw parallels with the increasing valuation of cryptocurrencies and a surge in the stock prices of internet companies in the past. Those who were there first in the market made a lot of money, provided they exited well in advance before the crash. Despite the crash, internet platforms and their applications continue to grow, making it an indispensable part of our daily life.
Guess, we can say the same about cryptocurrencies and its underlying blockchain. Whether it is a bubble or not, the technology has already proven to be valuable and will continue to be vital until another revolutionary technology comes into the picture. Meanwhile, those who are planning to make it to the Shark Tank with a product/idea based on cryptocurrencies can be sure of not getting Mark Cuban onboard.
Ref: Twitter | Business Insider | Image: NewsBTC