Billionaire founder Mark Cuban says the cryptocurrency market is “just like” the dotcom bubble of the late 1990s and early 2000s. His announcement appears to indicate that the valuation of digital assets may decline as investors dry up.
“When we look at cryptocurrency trading, it’s just like an online stock bubble. Just like,” Cobain tweeted Monday before giving cryptocurrency enthusiasts their best hope.
While the internet bubble did not end well for the vast majority of internet company stocks, Cuban said some of them emerged from the ruins and formed legitimate companies. I immediately came up with Amazon, eBay, and Priceline.
According to Cuba, Bitcoin (BTC), Ethereum (ETH) and “some others” will likely follow a similar path as value propositions and utility issues continue to grow.
Cobain’s apparently positive view of the two leading cryptocurrencies emerged even as he removed all accounts of the depreciation of the money supply and fiat currency. According to him, these are “trade offers only” and claim that the cryptocurrency’s valuation is based only on supply and demand.
Cobain did not fully understand his Bitcoin story. He once claimed that bananas are a better medium of exchange than BTC and said that the digital asset will be more of a collector’s item than a financial instrument.
But just last month, he praised Bitcoin’s monetary policy, saying public companies should “commit to never issuing new shares.” He, of course, pointed to Bitcoin’s limited supply of 21 million units embedded in the code.
Cryptocurrency assets returned to the spotlight on Monday after the overall market lost more than $ 200 billion from top to bottom. Declining, the overall market cap has quadrupled in the past year, with Bitcoin recently reaching a full-time high of around $ 42,000.