There Is a 99% Chance of Losing Everything in Crypto, Says Mark Cuban
- The American billionaire said that the crypto market is exactly like the internet stock bubble.
Mark Cuban, an American entrepreneur and investor, compared Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term with the dot-com bubble and added that there is a 99% chance of losing everything in the crypto market.
In a series of tweets on Monday, the owner of the NBA’s Dallas Mavericks mentioned that only a few digital assets will survive the bubble burst. He showed bullish sentiment for Bitcoin and Ethereum by comparing the top two crypto-assets to internet companies like Amazon and eBay but added that many cryptocurrencies will not survive in the end.
Cuban outlined that the crypto market is driven by the concept of supply and demand and all the other narratives are just sales pitches. In his opinion, 'scarcity vs demand' is the biggest sales pitch in the case of the crypto market.
“Watching the cryptos trade, it’s exactly like the internet stock bubble. I think Bitcoin, Ethereum, a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting, and thrived, like Amazon, eBay, and Priceline. Many won’t. But, If you are taking on debt that you can’t afford to pay back to invest in crypto, you are a fool, and there is a 99% chance you will lose everything. Personal disaster stories are built on Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term,” Cuban mentioned on Twitter.
Crypto Pricing
Additionally, he raised the issue of the valuation of crypto assets. Bitcoin and other digital currencies are up nearly 20% since the start of 2021 despite the recent crash. Bitcoin is currently trading near $35,000 and Ethereum jumped above $1,100. So, Cuban addressed the pricing and valuation issues associated with the crypto market.
“During the internet stock bubble, 'the experts' tried to justify whatever the pricing of the day is. Crypto, much like gold, is supply and demand-driven. All the narratives about debasement, fiat, etc are just sales pitches. The biggest sales pitch is scarcity vs demand. That’s it,” he added.
Mark Cuban, an American entrepreneur and investor, compared Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term with the dot-com bubble and added that there is a 99% chance of losing everything in the crypto market.
In a series of tweets on Monday, the owner of the NBA’s Dallas Mavericks mentioned that only a few digital assets will survive the bubble burst. He showed bullish sentiment for Bitcoin and Ethereum by comparing the top two crypto-assets to internet companies like Amazon and eBay but added that many cryptocurrencies will not survive in the end.
Cuban outlined that the crypto market is driven by the concept of supply and demand and all the other narratives are just sales pitches. In his opinion, 'scarcity vs demand' is the biggest sales pitch in the case of the crypto market.
“Watching the cryptos trade, it’s exactly like the internet stock bubble. I think Bitcoin, Ethereum, a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting, and thrived, like Amazon, eBay, and Priceline. Many won’t. But, If you are taking on debt that you can’t afford to pay back to invest in crypto, you are a fool, and there is a 99% chance you will lose everything. Personal disaster stories are built on Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term,” Cuban mentioned on Twitter.
Crypto Pricing
Additionally, he raised the issue of the valuation of crypto assets. Bitcoin and other digital currencies are up nearly 20% since the start of 2021 despite the recent crash. Bitcoin is currently trading near $35,000 and Ethereum jumped above $1,100. So, Cuban addressed the pricing and valuation issues associated with the crypto market.
“During the internet stock bubble, 'the experts' tried to justify whatever the pricing of the day is. Crypto, much like gold, is supply and demand-driven. All the narratives about debasement, fiat, etc are just sales pitches. The biggest sales pitch is scarcity vs demand. That’s it,” he added.