You’re Completely Wrong When You Say Bitcoin Has No Intrinsic Value (Mark Cuban)
You’ll see why Bitcoin remains the most robust store of value despite price fluctuations.
Source — YouTube
Mark Cuban is a self-made billionaire and Bitcoin enthusiast who has built a fortune through his successful streaming company, Broadcast.com.
In 1999, Yahoo purchased the company for $5.7 billion, making it their most expensive acquisition. However, the move was not well received at the time and is now considered one of the worst Internet acquisitions in history.
Cuban was able to net over a billion dollars by selling his Yahoo stock options just before the stock market crash of 1999.
Mark Cuban, now the Dallas Mavericks owner, has been a vocal critic of people who say Bitcoin has no intrinsic value.
In a recent interview, Cuban said people who claim that Bitcoin has no intrinsic value are missing the point.
He says Bitcoin isn’t a physical asset backed by Gold or Silver, but there are other ways to determine its value.
He believes Bitcoin’s value is its utility and how easily you can use it to transact. The features that make Bitcoin valuable are its decentralised nature, meaning governments and financial institutions can’t control it.
Mark Cubans:
“Decentralisation makes Bitcoin a powerful tool for facilitating global transactions, as it’s not subject to the fees and restrictions of traditional financial systems.”
Bitcoin Is Unmatched as a Store of Value.
Mark Cuban believes in Bitcoin’s “store of value” capability and thinks it’s even better than Gold.
He points out that Bitcoin’s algorithmic scarcity and limited supply will increase appreciation as demand increases.
Cuban also sees Bitcoin as having a significant advantage over other blockchains because it has “ZERO competition as a Store of Value.”
He believes that as other blockchains compete with each other and potentially fail, people will see Bitcoin as a safer haven and the “more conservative crypto play.”
Cuban says more people will see it as the best “Store of Value” option and make it the “haven of Crypto.”
You Can’t Hold the Beach Ball Down Underwater for Much Longer.
Mark Cuban thinks now is an excellent time to consider buying Bitcoin.
Despite criticism for his bullish stance on Cryptocurrency, Cuban insists that he’s simply sharing his thoughts on emerging technology and that it’s up to individuals to make their own decisions with their money.
He admits that it’s difficult to predict how low the price of Bitcoin might go, but he has started buying it slowly but has not yet gone “all in.”
Cuban also mentions that he’s keeping an eye on the potential domino effect of the FTX crash on other companies.
He says that buying Bitcoin at these prices could be wise because of the growing adoption rate, and people are increasingly accepting it as a form of payment.
Cuban says it’s a sign that people are finding value in using it and fulfilling a real need in the global economy and that we should think of Bitcoin and crypto less like a currency and more like software.
Mark Cuban:
“Don’t think of crypto as currencies. Think of them as decentralised, secure, networked platforms with features that allow for developing apps with unique utility for individuals and businesses.”
Dot Com Bubble Has Similarities to the Current State of Cryptocurrency.
Mark Cuban sees the collapse in crypto happening simultaneously as the stock market is being hammered by inflation fears, echoing the early 2000s dot-com bubble.
During the dot-com era in the late ’90s, speculative investing led internet-based companies to have overinflated evaluations because people could see the value in the technology, but it wasn’t ready.
The Nasdaq was up 400% five years before a massive crash in 2001 and 2002.
Mark Cuban:
“Crypto is going through the lull that the internet went through, after the initial surge of exciting apps and NFTs, or nonfungible tokens, crypto is entering an “imitation phase” where too many companies fail to bring new utility to the market.”
Cuban says that the blockchains that emerge from the lull will be the ones that use “smart contracts to improve business productivity and profitability.”
People Are Still Speculating Instead of Innovating
Recently Mark Cuban expressed that the current state of innovation is in a transitional phase between the “imitator” and “idiot” stages.
However, he believes there is still a lot of game-changing innovation to do.
The crypto industry’s current state is similar to the internet’s early days. He believes that people make the same mistakes by being speculators instead of innovators.
Mark Cuban:
“One of my favourite sayings is…
First, there are the innovators, then there are the imitators, then there are the idiots, right, and so I think right now we’re in a cross between the imitator stage with a little, you know, a smattering of idiots.
But there’s still a lot of innovation to be done that will be game-changing”.
Final Thoughts.
There are counterarguments to Mark Cuban’s thoughts on Bitcoin, including its high volatility, limited use cases, lack of regulation, and environmental impact.
Some critics argue that these factors make Bitcoin a less reliable store of value and less useful than traditional currencies.
Cuban disagrees and sees Bitcoin as a powerful tool for facilitating global transactions and believes it’s unmatched as a store of value due to its limited supply and decentralised nature.
Cuban compares the early days of internet streaming to Bitcoin and says people were trying to understand why the technology was helpful and couldn’t see how or why we’d use it.
Cuban thinks now is an excellent time to consider buying Bitcoin, despite the potential for price fluctuations, because the adoption continues to increase.
You’ll need to decide whether now is a good time to invest and dip your toe in the water.