Mark Cuban has had quite the successful run in the tech industry, successfully starting and selling bitcoin worth predictions at the opportune time and using his profits to invest in the next big thing. Over the years, Cuban has come around on the concept somewhat but—despite the recent announcement that his Dallas Mavericks will accept cryptocurrency as payment for tickets next year—has maintained a level of skepticism.
I think it’s got no shot as a long term digital currency. At the time of Cuban’s comments, bitcoin was enjoying a bit of a boon. 700 range, which at the time would have been near its peak value. The days that followed Cuban’s comments quickly wiped up the recently recovered value. 500 and wouldn’t recover for the better part of two months.
I go up and down on it. Cuban’s comments again came just before the bitcoin market started a slide. 200 range for days at a time. Cuban remained largely mum on bitcoin until the currency started to talk off in 2017. 3,000 threshold, Cuban cautioned potential investors about jumping in on the bandwagon. He fired off a series of tweets that suggested folks temper their expectations for the cryptocurrency. Except of course gold makes nice jewelry.
I think it’s in a bubble. I just don’t know when or how much it corrects. While those who are more bullish on bitcoin have often dismissed the notion of a bubble, the growth of the cryptocurrency did stagnate in the weeks following Cuban’s comments. 2,500 range for the better part of the month. At the time, Cuban acknowledged the approach was approaching unknown territory.
Markets didn’t have much movement despite Cuban’s newfound involvement in cryptocurrency, but it appeared at the time that Cuban was willing to view cryptocurrency as a risky investment that could produce high returns. First, Cuban noted that cryptocurrency is a high-risk investment. It’s like collecting art, it’s like collecting baseball cards, it’s like collecting shoes. Still, the Dallas Mavericks owner was open to the idea of using cryptocurrencies as a volatile investment vehicle. If you do that, you’ve got to pretend you’ve already lost your money. At the time the video dropped, Bitcoin was in the midst of it massive climb to close the year.