Cuban Says Bitcoin Sure To Win Against Conventional Stocks
Billionaire investor Mark Cuban has joined the growing list of prominent investors that see Bitcoin as a viable investment opportunity.
The owner of the National Basketball Association’s Dallas Mavericks recently started associating himself with the top cryptocurrency and has drawn massive interest from the crypto community.
His tweets about Bitcoin have been followed keenly and his latest tweet will be seen as a welcomed development for Bitcoin enthusiasts.
Bitcoin a Viable Store of Value
According to him, Bitcoin has become a viable digital store of value.
“Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY,” Cuban opined in a Twitter post.
He further likened the Bitcoin craze to the dot.com bubble where the experts tried justifying what the price of the day is.
There have been numerous predictions on the Bitcoin price, with some predicting a higher bull run than what is currently happening.
Cuban stated that Bitcoin is now the digital gold and its price is determined by the supply and demand chain. He also stated that all the narratives about fiat, debasement, etc. are mere sales pitches.
Peter Schiff Counters Cuban’s Assertion
However, not everyone is on the same page with Cuban. Popular Bitcoin skeptic Peter Schiff has something different to say.
According to him, some of the stocks during the dot.com bubble had real value, which is why they were able to survive the crisis. But today’s cryptos don’t have any real value attached to the tokens. As a result, the end will soon come for all of them.
However, Cuban still stood on his statement, pointing out that
“old-school investors are getting their “ass kicked” due to Bitcoin’s “Store of Value Generation.”
Cuban was reacting to the ongoing battle between the r/Wallstreetbets Reddit community and the Wall Street. As it stands, the Reddit community is winning the battle for supremacy, despite the massive arsenal of funds the hedge funds have.
Younger Generation Prefers Digital Assets
He said the younger generation has understood the value of digital assets and they are taking the bull by the horns to prove their point.
Their understanding of the digital financial system means they are not going back on the old school finance methods. As a result, they are willing to dine with these digital assets. And as the law of demand is always true in the market, price always reacts in line with demand.
Smart contracts, nonfungible tokens and blockchain technology now enable any digitally-represented asset to act as a store of value. It doesn’t have the numerous disadvantages of physical collectibles and has been made to be scary as well.
Cuban said the new world is favoring digital assets over the traditional finance system and it will be difficult to erase this new-found technology.
Instead, he sees digital assets gradually replacing fiat currency as a store of value due to the blockchain technology behind them.
Cuban pointed out that the stock is another digital store of value, but the new generation investors have seen the deficiencies in these stocks. As a result, they are taking advantage of the futuristic asset that has all the features the conventional stock lack.