Wednesday, June 7, 2017

Billionaire Mark Cuban loves the Blockchain, but thinks Bitcoin is a bubble

Asset prices are surely in the eyes of the beholder as it really depends on who you are as an investor in determining how you see cryptocurrencies fitting into the financial system.

For some they see it as a means of revolution, and a medium of exchange outside the power and authority of banks and governments.  For others it is a long-term investment, and a hedge against the devaluation of fiat currencies.

But for those who put their money in traditional assets like stocks, bonds, and real estate, the Bitcoin phenomenon is often seen as a fad, and as something that is unlikely to last over the long-term.  And it now appears that one of Bitcoin's biggest critics is a man who made his fortune selling a company for billions of dollars during the Dot Com boom, and where he sees the cryptocurrency as a similar bubble to the internet companies who became overvalued just a few years before they completely went bust.

Add billionaire Mark Cuban to those who are skeptical of bitcoin and the cryptocurrency universe. "I think it's in a bubble. I just don't know when or how much it corrects. When everyone is bragging about how easy they are making $=bubble," Cuban said in a tweetstorm on Tuesday.  
Cuban's tweetstorm comes on the heels of bitcoin's latest record high near $2,900 a coin. The cryptocurrency has gained in 33 of the past 38 sessions, tacking on 144% over that time. It's up 200% so far in 2017. - Business Insider
Cuban went on to tweet that he loves the Blockchain and sees it becoming an important platform for business and finance well into the future.
Interestingly for Mark Cuban and many 'traditional' Wall Street investors who don't get the cryptocurrency phenomenon, Asian investors are jumping into ones like Bitcoin and Etherium with both feet.  And perhaps the one question that remains for the future of Bitcoin is which region of the world do you think will have control over the global financial system a few years from now?  The West, or the East?  And perhaps the winner will truly determine the fate of cryptocurrencies as a viable asset and medium of exchange.


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