Billionaire Mark Cuban stated that the cryptocurrency market is "very" like the Internet bubble of the late 1990s and early 2000s. His statement seems to indicate that once the enthusiasm of investors is exhausted, the valuation of digital assets may collapse.
"Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY," Cuban wrote on Twitter on Monday, but his subsequent statement gave cryptocurrency enthusiasts a glimmer of hope.
Cuban said that although the Internet bubble did not bring good results to the stocks of most Internet companies, a few companies were reborn from the ashes and became legitimate companies. I immediately thought of Amazon, eBay, and Priceline.
In Cuban's view, as the value propositions and use cases of Bitcoin (BTC), Ethereum (ETH) and "some other cryptocurrencies" continue to grow, they may follow a similar trajectory.
Cuban seems to be optimistic about Bitcoin and Ethereum, although he also refuted all the claims surrounding currency devaluation and fiat currencies. He stated that these claims are "only sales rhetoric" and that the valuation of cryptocurrencies is based only on supply and demand.
Cuban's position on Bitcoin is not clear yet. He has said that bananas are a better medium of exchange than Bitcoin, and that this digital asset will be more like a collectible in the future than a financial tool.
But just last month, he praised Bitcoin's monetary policy, saying that listed companies should "commit to never issue new shares." Of course, he is referring to the 21 million supply cap that mimics Bitcoin.
On Monday, after the entire market fell from peak to trough, falling more than $200 billion, crypto assets became the focus again. To narrow it down, as Bitcoin recently reached an all-time high of about $42,000, the total market value of cryptocurrencies has appreciated four times in the past year.