- Mark Cuban compared the cryptocurrency boom to the dot-com bubble, recommended that buyers hedge their bets, and warned them of the dangers of debt in a series of tweets this week.
- “Watching the cryptos trade, it’s just like the internet stock bubble,” said “Shark Tank” star and billionaire owner of the Dallas Mavericks.
- Cuba sold its startup to Yahoo in 1999 and successfully defended its billion-dollar windfall when the market crashed a few months later. “My advice? Learn how to hedge,” he tweeted.
- “If you’re incurring debt that you can’t afford to pay back to invest in crypto (or stocks or currency), YOU’RE A POOR and there’s a 99% chance you’ll lose EVERYTHING,” Cuba added .
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Billionaire investor Mark Cuban compared Bitcoin’s boom with the dot-com bubble in a a host of tweets this week, predicting large numbers of cryptocurrencies will not survive the upcoming crash.
“Watching the cryptos trade, it’s just like the internet stock bubble,” said the “Shark Tank” star and Dallas Mavericks owner. The cryptocurrency market recently achieved a $ 1 trillion market capitalization for the first time, as Bitcoin and other digital coins more than tripled in value over the past year.
“I think Bitcoin, Ethereum, a few others will match those built during the dot-com era, surviving the bubble bursting and thriving, like Amazon, eBay, and Priceline, “Cuba continued. “Many will not.”
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Bitcoin, which hit a record high of $ 41,000 less than a week ago, fell as much as 21% on Monday to trade around $ 30,100, before improving to $ 35,500 by Tuesday.
Cuba sold its internet-radio startup, Broadcast.com, for $ 5.7 billion to Yahoo in 1999. It acquired $ 1.4 billion of the search giant’s stock as a result, and quickly enlisted Goldman Sachs to help protect its windfall as it recognized the frenzy around technology. stocks would not last much longer. He advised crypto buyers to follow his lead and hedge their bets as well.
“A lot of fortune will be made and COLD as we find out who has the stomach for HODL and who doesn’t,” he tweeted, using the acronym for “hold on to dear life” which is popular among crypto fans. “My advice? Learn how to hedge.”
The tech billionaire also warned crypto buyers from overestimating themselves financially.
“If you’re incurring debt that you can’t afford to pay back to invest in crypto (or stocks or currency), YOU’RE A POOR and there’s a 99% chance you’ll lose EVERYTHING,” he said. “Personal disaster stories are built on leverage.”
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Finally, Cuba has belittled claims that crypto is an alternative to fiat currency or a hedge against currency ruin, describing them as “sales pitches.” Insiders also tried to justify the sky-high prices of internet companies in the late 1990s, he noted.
“Crypto, much like gold, is driven by supply and demand,” he tweeted. “The biggest selling pitch is shortages versus demand. That’s it.”
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Cuba’s warnings about crypto echo its comments last year on the day trading boom. He said a rush of retail investors into Hertz, JCPenney, Kodak, and other questionable stocks “feels just like” the dot-com bubble.
“You do the same thing as they did in the late ’90s,” Cuba continued. “You roll it. You think everybody’s a genius in a bull market.”
“‘I’ve got to go all in’ – that’s the kind of thing we just saw in the internet bubble,” he added.