Breaking: Visionary expert Mark Cuban states “Dot-com bubble and crypto are the same”

TL;DR Breakdown

  • Mark Cuban’s simple advice: “Learn how to hedge”.
  • He reminded of insane prices of internet companies before the crash.

In a series of posts on Twitter, Mark Cuban has drawn similarities between the bitcoin bubble to what happened in the late 1990s with the dot-com bubble, where the excessive speculation of internet-related holdings caused a significant crash in value, costing investors losses in the millions.

At the time, Cuban managed to preserve the $5.7 millions he had made with an intelligent trade with his start-up to Yahoo. Through daunting tweets, he writes: “If you are taking on debt that you can’t afford to pay back to invest in crypto, YOU ARE A FOOL and you will LOSE EVERYTHING,”

Some cryptocurrencies will survive, while others will crash and never recover

Cuban compared the crypto traders to what happened with the dot-com bubble, stating that just like what happened with some companies like Amazon and Ebay, who thrived despite the crashes of many other companies, some cryptocurrencies will survive, while others will crash and never recover.

The “Shark Tank” star is famous for his predictions, but readers and investors struggle to believe that a market that recently rose to an outstanding $1 trillion value and quadrupled over the past year alone is doomed like in the 1990s.

Mark Cuban compared Bitcoin and Ethereum to Amazon and Ebay, stating that he believes that these are the crypto-values more likely to survive a potential crash.

“Many fortunes will be made and LOST”, writes the billionaire, “We will find out who has the stomach to HODL (Hold on for Dear Life). My advice? Learn how to hedge.”

Mark Cuban sees the ploy to push investments even in the face of a potential burst

Although analogue to risk-takers, investors have been warned against taking debts to invest large sums in the market at this stage. Of course, leverage must be taken into account when it comes to personal losses or gains.

To further his statement, Mark Cuban said that just like insiders tried to justify the insane prices of internet companies before the crash, investors are using the claim of crypto potentially replacing fiat currency as an excuse to keep on investing even in the face of a potential burst.

His warnings do not fall short of comparing the rise in day trading to the lackluster of stocks that rose and fell during the dot com bubble such as Hertz, JCPenney or Kodak.

Cuban even drawn similarities with the bevaviour of crypto traders and those doing the same in the 1990s. Quoting him, “You think everybody is a genius in a bull market.”