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Mark Cuban, the Billionaire American Entrepreneur and investor, shared his view on the crypto market on Monday via Twitter. He tweeted his comments on the state of cryptocurrencies, comparing Bitcoin and Ethereum to the internet stock bubble amid the crash that happened in the crypto market on Monday.
The volatility in the crypto market in recent weeks has taken many people by surprise as the crypto market took a nosedive during the trading hours of Monday. Having the attention of many people, including the billionaire investor, Mark Cuban, who did a Twitter thread as he shared his view on the crypto market and its volatility.
He said that Cryptocurrencies "are exactly like the internet stock bubble. EXACTLY"
He also weighed in on his thoughts on particular assets like Bitcoin and Ethereum. Speaking on the matter, Cuban commented that he thinks “BTC, ETH, a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting and thrived, like AMZN, eBay, and Priceline. Many won’t.”
Warning against Greedy investment in Crypto.
While Cuban compared the crypto market to the dot-com bubble, he also sent out a note of advice to people who still think the price of Bitcoin and other major cryptocurrencies will go up forever.
Here is his tweet:
With the overleveraged market, a wrong move at the wrong time can make someone lose a fortune in the stock or crypto market. The market moves based on high leverage and a flash crash can make an investment worthless.
One Twitter user, name and handle withheld, made a comment under Cuban's thread and said, "I just took out a second mortgage on my house and bought Bitcoin. Bought me 8 Bitcoin with the proceeds. We just paid our mortgage off in September 19. And my mother who is 78 is taking her entire savings and buying Bitcoin. She plans to buy 22 Bitcoin tomorrow if below $35k."
It is quite alarming how greedy people can get when it comes to making money. No one knows if the crypto market will crash like the internet stocks during the Dot-com bubble, but I hope many people won't lose a fortune when it happens.
It is advisable to invest what you are willing to live without in the crypto market.
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Tobi is a full time day/swing trader with 3 years’ experience in the currency and commodity market. He is interested in cryptocurrencies in combination to the current financial system. Tobi holds a bachelor's degree in Agriculture.