By Mark Cuban, the billionaire owner of the Dallas Mavericks, has told reporters that bitcoin is a lot like gold. However, in his comments, he stirred up unpleasant discussion regarding both assets.
Bitcoin has in the past been compared to gold. This comparison is on the basis that both assets are scarce resources. Depending on the itinerary, both assets can as well be a “store of value.” It is then no wonder that a good number of bitcoin investors also tend to be gold investors.
In a recent interview, billionaire Mark Cuban made this same comparison “They’re both collectibles. The value is based on supply and demand. And the good news about Bitcoin is there’s a finite supply that’ll ever be created,” he echoed.
However, as a known critic of gold, he says that gold collectors are like a “religion,” and he “does not see it as an alternative to currency.” He has however said that bitcoin is worth putting some cash into. “It’s still very much a gamble,” he said in 2017.
Cuban is an Ardent Supporter of Start-Up Technology Ventures
The NBA team owner recently said that he has some bitcoin held up. He has in the recent past supported various cryptocurrency ventures including a $20 million cryptocurrency fund and an e-sports betting platform’s digital token sale. The billionaire has always been an enthusiast of emerging technologies and seems sold to the blockchain.
Nevertheless, Cuban’s thoughts might be in contrast to gold enthusiasts and have some mixed reactions in general. His opinion that bitcoin is like gold could be viewed as derogatory. He has publicly announced that he hates gold, but he also admits that gold has a “finite supply” which in essence makes it more valuable. Investors in the industry seem to agree.
Bitcoin Could Survive Global Economic Prices
Speculations have been rife with others saying that bitcoin has seen a stunning performance in 2019 as compared to 2018. Although the coin is yet to achieve the 2018 all-time high, the performance is promising in terms of coin stability. The currency has hit the $13,000 mark and has been fluctuating on the $12,000 and $11,000 support areas. The coin has been rising above $12,000 and occasionally recoiling back to a narrow $11,000.
Bitcoin Performance Similar to Gold’s in 2008-2011
Theories have been brought forth surrounding the price events of crypto. Analysts have been focusing on the signs of a lingering price boom. They have shared different opinions on what investors should look out for to signal an all-time high since the creation of bitcoin. Crypto research and analytics expert, the Messari co-founder, Dan McArdle, believes that bitcoin will, in essence, mimic the 2008-2011 gold performance. In simple terms, this means that bitcoin will rise exponentially then plunge to deep lows before spiking again to extra high levels.
Comments