(Benzinga) – Mark Cuban weighs in on the recent crypto craze.
What Happened: An investor, the Shark Tank host, and the Dallas Mavericks owner Mark Cuban has shared his thoughts on investing in crypto with his followers on Twitter, calling crypto trades a bubble “exactly like the internet stock” one.
He further added that there would be many fortunes made and then lost, recommending to learn how to hedge instead.
“Crypto, much like gold, is supply and demand driven. All the narratives about debasement, fiat, etc are just sales pitches. The biggest sales pitch is scarcity vs demand,” Cuban wrote.
The Mavericks owner also warned against taking on debt to invest in crypto, saying there’s 99% they can lose everything.
Why It Matters: The Shark Tank host has always been bearish about cryptocurrencies.
In a 2019 interview with Wired, Cuban compared Bitcoin to bananas, implying that they’re both collectibles, as well as gold, and he said he would rather have bananas than the cryptocurrency.
In 2020, he continued the banana argument in an interview with Forbes: “BTC is what it is, something that enough people have agreed upon is an investable asset. A banana has more utility, potassium is a valuable nutrient to every person on the planet :), but as long as people accept BTC as a digital version of gold, it’s investable.”