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It’s human nature.
We want the world to know when we’re doing well, and our investments are going up. And when we’re not, keeping quiet shields us from criticism.
The words “I told you so” when everything capitulates are like a punch to the gut, leaving you breathless.
Some might even wish they were less vocal when times were good.
Mark Cuban has been in technology since the early days of the internet. I write about him often, mainly because he doesn’t mince his words and talks about Cryptocurrency a lot.
His success and Billions in net worth are predominantly from the sale of his streaming company Broadcast.com.
Yahoo purchased the company for an eye-watering $5.7 billion, making it their most expensive acquisition.
The purchase was in 1999, before the dot com bubble burst.
Broadcast.com had 570,000 users at the time, and the purchase price equated to $10,000 per user.
Insanely overpriced.
Yahoo gave Cuban stock options in their company, most of which he sold in 1999, netting him over a Billion Dollars right before the stock market went into freefall.
Yahoo shut down Broadcast.com in 2002.
Even today, it’s recognised as the worst Internet acquisition in history.
Cuban says people act similarly in the crypto market as they do in the stock market. He says when prices go up, everyone wants to talk about the investments they made, but people don’t say a word when prices go down.
Mark Cuban — Source
“In crypto, there are many similarities with the stock market.
There’s an old saying in the stock market that ‘everyone’s a genius in a bull market.
When stock prices go up, everyone will tell you what stocks they’re buying. But when stock prices go down, everyone gets quiet.
The same goes for crypto. When Ethereum, Bitcoin, and others go up, everyone feels smart, but no one wants to talk about it when they go down.
Cuban says he’s currently looking for opportunities to buy tokens that have become very cheap, but he’s only buying a little at a time.
He says he’ll buy a little bit when the price of Ethereum drops below a certain amount or when the price of Bitcoin drops below a certain amount. He views tokens, like Ethereum and Bitcoin, not only as associated with Web 3 but also as a way to change how people do business.
Cuban says that when people invest in assets, like stocks, there’s always some speculation. Some buy because they think the price will go up, not because they’re in it for the long haul. With interest rates going up, fewer people speculate because it’s harder to borrow money for speculation.
Mark Cuban — Source
“All tokens like stocks have some level of speculators, who are not long-term investors but rather want to buy because they think the price is going up.
With interest rates rising, speculation is declining, and people are borrowing less money to speculate.
As a result, stock prices are decreasing, including the prices of Amazon and Netflix, which have gone down more than those of Bitcoin and Ethereum.”
It’s Bitcoin and Ethereum. All the Other Applications Are Guesswork.
Cuban is adamant about Bitcoin’s ‘store of value’ capability and says it’s better than Gold. He also believes that Ethereum is winning the application game.
He says Bitcoin has a significant advantage over other cryptocurrencies because it has no competition as a store of value. Other blockchains are competing with each other to win applications, but many of them will eventually fail.
It’ll be a massive win for Bitcoin because people will see it as a safer option when other blockchains become less active. Cuban believes this will make Bitcoin even more valuable as a store of value and become the haven of the cryptocurrency world.
Despite having more Bitcoin, Cuban sees Ethereum as a more attractive investment option with more potential for returns but said this about Bitcoin.
Mark Cuban — Source
“We all can argue that till we are blue in the face.
I don’t care.The one thing BTC has as a HUGE advantage is that it has ZERO competition as a Store of Value.
All the Smart Contract chains and all the blockchains are in a DEATH war to win those applications.
Many will lose.”
Final Thoughts.
In survival mode, putting your money into investments might feel like the worst idea ever.
You’re taking the money you could use and putting it into something with an unknown outcome.
It’s scary as hell. But if you believe in something and put your money where your mouth is, it could pay off handsomely.
I agree with most of what Mark Cuban says about investing.
Unless you have a deep knowledge of the applications space, you’re best sticking to Bitcoin and Ethereum and thinking long-term.
Short-term speculators have a recency bias; their decision-making is based only on recent events.
They’re so short-term that if prices suddenly increase, they’re the ones to FOMO (fear of missing out) and buy the top of the market. And when prices are down, you’ll see them panic and sell at a loss.
I only know this because I was that person.
Two essential things changed for me.
- Play with money you can afford to lose
- Think over a longer-term time horizon.
It’s an incredible strategy, not just because you’re being slightly responsible, but playing with money you can afford to lose takes the emotion out of investing.
You’re vulnerable if you’re investing money you need for everyday life because it messes you up if the market crashes by 50%.
Looking at things over a long-term time horizon makes you forget short-term price fluctuations and view them as a buying opportunity.
This article is for informational purposes only; it should not be considered financial, tax or legal advice. You can consult a financial professional before making any significant financial decisions.
This article is for informational purposes only; it should not be considered financial, tax or legal advice. You can consult a financial professional before making any significant financial decisions.