Bitcoin & Crypto’s ‘Biggest Sales Pitch is Scarcity vs Demand’ Says Dallas Maverick’s Owner, Mark Cuban
The Shark Tank investor says crypto is trading like an internet stock bubble, but Bitcoin, Ethereum, and a few others will be the only survivors. Let’s “find out who has the stomach to HODL,” he said.
Billionaire investor Mark Cuban is back with his commentary, and this time, it is not a comparison to a banana but the internet stock bubbles.
“Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY,” said Cuban.
However, he does think the likes of Bitcoin, Ethereum, and a few other cryptos will be “analogous to those that were built during the dot-com era, survived the bubble bursting and thrived, like AMZN, eBay, and Priceline.” But many won’t, he added.
According to him, crypto is all about supply and demand, much like gold. Meanwhile, all the other narratives about the debasement of fiat are just sales pitches; just like “during the dot-com bubble, “the experts” try to justify whatever the pricing of the day is.”
“The biggest sales pitch is scarcity vs demand. That’s it.”
During the recent rally, Bitcoin made its way to $42,000 after breaking past its previous $20,000 peak in the mid of December. ETH also made its way to its $1,420 ATH but could only hit $1,350 before the market-wide sell-off brought the cryptos by nearly 30%.
“Along the way, MANY fortunes will be made and LOST, and we find out who has the stomach to HODL and who doesn’t. My advice? Learn how to hedge,” advised Cuban.
Unlike the Shark Tank investor, many legendary investors like Bill Miller see Bitcoin going higher and even higher. The uptrend would be because of the much faster-growing demand compared to Bitcoin’s supply, which is growing less than 2% a year. Meanwhile, according to AngelList founder Naval Ravikant,
“We’re transitioning through a temporary bug in the Internet’s history before we knew how to build open social protocols. At first, the Internet transferred data. Then, it transferred scarcity (Bitcoin). Then, computation (Ethereum). Coming up – identity and social graphs.”