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Mark Cuban: many cryptocurrencies will not survive
Mark Cuban: many cryptocurrencies will not survive
Crypto

Mark Cuban: many cryptocurrencies will not survive

By Marco Cavicchioli - 12 Jan 2021

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The famous entrepreneur, investor, and owner of the Dallas Mavericks, Mark Cuban, has been talking a lot about cryptocurrencies in recent days. 

He has done so with several tweets on his official Twitter profile.

Cuban’s attitude towards cryptocurrencies has changed over time. Initially, he was an outright detractor, but over time his stance has softened. 

In the last week, he has published six tweets regarding Bitcoin and cryptocurrencies.

The first is a response to well-known Bitcoin supporter Chamath Palihapitiya, in which Cuban says he would be willing to run for the US presidency if the price of BTC reached $1 million. 

Indeed, he adds that, should he be elected, he would pledge to donate 350 BTC per year to the Treasury, for each of the 4 years of his term, so that he could give 1 satoshi to every American citizen who pledges to keep it for at least 10 years. 

In reality, however, the numbers don’t add up because, considering that one satoshi is equivalent to one hundred millionth of a bitcoin, 350 BTC is equivalent to 35 billion satoshis, while there are about 350 million US citizens. Therefore, with 350 BTC per year, it would be possible to give individual US citizens 100 satoshis each, and Cuban himself has since corrected this

Mark Cuban’s cryptocurrency investment advice

In a second tweet, he spoke more generally about the cryptocurrency market, comparing it to the famous dot-com bubble

Within this analogy, BTC, ETH, and some other cryptocurrencies will survive the bursting of the bubble and prosper, as did for example Amazon, eBay and Priceline, but many other cryptocurrencies will not. 

In this regard he writes

“Along the way MANY fortunes will be made and LOST and we find out who has the stomach to HODL and who doesn’t. My advice ? Learn how to hedge”.

He then adds that the value of cryptocurrencies, like that of gold, is made by the relationship between supply and demand in the markets, and the factor that affects it most is the scarcity of supply compared to demand. However, this is especially true for BTC, while it is not always true for all other cryptocurrencies. 

Finally, he openly advises against taking on too much debt to invest in cryptocurrencies, or in stocks and other currencies, saying: 

“YOU ARE A FOOL and there is a 99pct chance you will lose EVERYTHING. Personal disaster stories are built on leverage”.

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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