Bitcoin Skeptics Busy Talking About Bananas, 2018 Bear Market & Missing Price Discovery
Despite the price of Bitcoin jumping more than 220% this year, billionaire Mark Cuban still isn’t interested in the leading cryptocurrency.
“My thoughts haven’t changed,” Cuban told Forbes a week before Bitcoin surged past an all-time high of $20,000 to hit a record $23,800 on Wednesday, in a story that was published Thursday.
Bitcoin is “a store of value…that is more religion than solution to any problem,” said Cuban adding that the cryptocurrency won’t be replacing government-backed currency.
“No matter how much (bitcoin) fans want to pretend that it’s a hedge against doomsday scenarios, it is not,” Cuban said.
“Countries will take steps to protect their currencies and their ability to tax, so the more people believe this is anything more than a store of value, the more risk of government intervention they face.”
However, Cuban does agree that bitcoin is like gold in the way that it is a store of value. Although with its supply being limited, as the demand for the digital currency fluctuates, so will the price, which will be volatile, “as long as people accept (bitcoin) as a digital version of gold, it’s investable,” he said.
Despite this optimistic view, Cuban went back to his banana having “more utility” because it has potassium, a “valuable nutrient to every person on the planet,” while Bitcoin is what it is because “enough people have agreed upon” it as an investable asset.
Absolutely crazy right now
Another person that remains skeptical of Bitcoin is the Rosenberg Research chief economist, who calls it a “massive bubble.”
However, given his Bitcoin issues, it looks like it’s him who is in a bubble because he didn’t even take time to understand it before ranting about it.
“You speak to most people that are asking me to put money in bitcoin, they can't even tell you who the person was that developed it or even how it's actually mined,” said David Rosenberg. Alright, uninformed boomer!
“It's just a classic, follow-the-herd, extremely crowded trade. It's in a massive bubble.”
He had a particular nugget to share with that “there's really nothing in the protocol to suggest that the supply of bitcoin can't go up once we hit that limit.”
From the March low of $3,800, during the coronavirus pandemic-induced sell-off recorded in gold, stock, especially oil prices, and every other asset class, BTC has seen a whopping 525% uptrend.
Since October, Bitcoin has rallied 114%, and the chart of the digital asset is looking “absolutely crazy right now” to Rosenberg, who took it as his civic duty to remind everyone of the 2018 bear market after the last time bitcoin behaved with such a “speculative fervor.”
Meanwhile, BTC/USD is holding firm around $23,000, embarking on its price discovery journey.