Hype Watch: Is Billionaire Skeptic Mark Cuban Changing Tune on Bitcoin?
Hype Watch: Is billionaire skeptic Mark Cuban changing his tune on Bitcoin? In short, no, despite numerous recent tweets on the subject.
Following a tweet in which he announced his subscription to Inside.com’s Bitcoin section, he got the usual treatment of celebrities talking about Bitcoin: a lot of engagement from a lot of people who are consistently online. This fomented a few more posts on the subject, addressing questions, one of which was how much he had in bitcoins. Cuban responded that he’s purchased about $20 (apparently “for years” because in a separate tweet he says he’s used Coinbase for years) “just to learn.”
Cuban’s analysis of Bitcoin is two-fold. On the one hand, he feels that its value is crippled by the fact that it’s much like gold in terms of a value store to date, and that we are currently in a massive bubble which will correct. He’s just “not sure how much.” His premise of “bubble” is that “everyone’s bragging about how easy it is.” This is not, unfortunately, the definition of a bubble, even if it is a characteristic of most of them.
Cuban believes that the blockchain technology will be valuable and will be everywhere in the future, and would probably be open to going big on companies that are working in the blockchain space. Nevertheless, he still believes that the valuation of Bitcoin is not destined to be massive, and that a correction is coming to the current value because it’s so much higher than previous all-time-highs.
If Mark Cuban ever did change his mind on Bitcoin, the impact would be significantly less important than it would have been when he first started commenting some years back. At this point, we’re far beyond celebrity opinion truly influencing the value and performance of Bitcoin, but one hopes that Cuban is putting his money where his mouth at, placing short bets against Bitcoin. Since he hasn’t declared that he’s doing that, his opinion on the matter doesn’t really matter.
With people of his class, their money is supposed to do the talking, and the fact that he has more in leather shoes than he does in bitcoins is the least effective denouncement in history. Betting against it and winning, however, would at least show he is earnest. Sadly, the distribution of the currency is high enough that even influencing two or three of his best friends to dump Bitcoin would probably not have a major effect on the value, let alone a lasting one.
The cryptocurrency train is leaving the station regardless if Mr. Cuban wants an executive class seat on it or not, so let’s not get too excited that he now fully acknowledges its existence.
Featured image from Flickr/Mark Levin.
Last modified: March 4, 2021 4:57 PM