It seems just about every time the Bitcoin markets perform well, legacy investors and traders feel the need to make themselves heard. Yesterday we heard from billionaire and reality television star Mark Cuban (again):
The old blog post he references is a 2008 round-up of blog posts he had previously written about investing. In one interesting tidbit, he says:
I couldn’t believe that I would have an advantage in the market. After all, I had read A Random Walk Down Wall Street in college. I truly thought that the markets were efficient, that any available knowledge about a company was already reflected in its stock price. Yet I saw Raleigh using the information I gave him to make money for his clients. He finally broke me down to start using this information to my advantage to make some money in the market. Finally after more than a year, I relented. I was ready to trade.
Notice I didn’t use the word invest. I wasn’t an investor. I just wanted to make money. The reason I was ready to try was that it was patently obvious that the market wasn’t efficient. Someone like me with industry knowledge had an advantage. My knowledge could be used profitably. As we got ready to start, I asked Raleigh if he had any words of wisdom that I should remember. His response was simple. “Get Long, Get Loud”.
This passage is interesting because it belies Cuban’s years-long advice against investing in Bitcoin. A quick study of the technology reveals that it has the potential to revolutionize the problems he elucidates through his blogging. It’s no mistake, then, that he was thinking of these words when he decided to make another tweet about Bitcoin.
$4,000 Range = Peak or No Peak?
In order for a veteran trader and investor like Cuban to want to get in on Bitcoin now, he must firmly believe it has potential to go much higher. “Buy high, sell higher,” said one response to his tweet:
Conspicuously missing from the conversation were the usual Bitcoin naysayers, at least not in force. Within a few hours, Cuban was back to his bubble talk.
Yet, is a bubble always a bubble? We’ve heard the same mantras from Cuban and people like him the whole way through. One suspects his next Tweet on the subject will be frustration at acquisition.
Featured image from Flickr/Danny Bollinger.
Last modified: March 4, 2021 4:58 PM