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Billionaire Mark Cuban and Other Personalities Share Their Thoughts on Bitcoin After Its Recent Huge Rally

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Mark Cuban Share Thoughts on Bitcoin

Bitcoin – the leading cryptocurrency, has been trending for some weeks now. A digital coin that was less than $1 in the first quarter of 2010 has risen above $34,000 (as of January 15, 2020).

This recent bullish run has broken the 2017 price record, leading to comments by both crypto enthusiasts and famous billionaires on the future of digital currency.

Earlier this month, the price of Bitcoin rose to an all-time high of $42,000 before crashing back. Currently, the price of BTC is $36,958, with a total market value of $689 billion.

However, in the face of this BTC bullish run, one comment has drawn attention. That is the comments of a famous billionaire investor, Mark Cuban, who has a history of criticizing bitcoin.

In the past, Mark was once quoted as saying that he’d rather have bananas than bitcoin.

The popular US billionaire has warned crypto traders to watch out for the rise in the interest rate – believes that the fast-rising decentralized finance (Defi) market could be a game-changer in the crypto market

Earlier this month, the price of Bitcoin rose to an all-time high of $42,000 before crashing back. Currently, the price of BTC is $36,293, with a total market value of $680 billion.

However, in the face of this BTC bullish run, one comment has drawn attention. That is the comments of a famous billionaire investor, Mark Cuban, who has a history of criticizing bitcoin.

In the past, Mark was once quoted as saying that he’d rather have bananas than bitcoin.

The popular US billionaire has warned crypto traders to watch out for the rise in the interest rate – believes that the fast-rising decentralized finance (Defi) market could be a game-changer in the crypto market.

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Investments in Bitcoin

However, even in the face of these warnings and criticisms, there are still numerous ongoing investments in Bitcoin. The various public endorsement by Wall Street billionaires who are backing cryptocurrency has helped convince more investors to enter the Bitcoin market.

Presently, popular investors such as Paul Tudor Jones and Standley Druckenmiller have both invested in Bitcoin. According to them, BTC is going to serve as a hedge against inflation.

It is also imperative to note that prominent firms such as Microstrategy, Twitter CEOs Square Inc, and MassMutual all have a massive amount of money in Bitcoin.

Last year August, Square Inc announced that it had bought $50 million worth of Bitcoin. And another famous payment merchant, PayPal, announced late August last year that it is going to allow its USA users to buy and sell cryptocurrency on its payment platform.

All these investments in the cryptocurrency have indicated that cryptocurrency is the future of finance.

These investments show that Bitcoin is supported by both big names and institutional investors over the last year.

However, some bought the digital coin as a hedge against upcoming inflation, which will likely come as a result of the COVID-19 pandemic stimulus measures.

Presently, Mark, who doesn’t expect the coronavirus stimulus package from the US president-elect, Joe Biden, thinks that the bond-buying by the federal reserve could affect the Bitcoin price in the short term.

According to Mark, “The whole narrative of the debt impacting pricing is only real if interest rates go up and by how much” He went further, “that’s when we can see the price of all assets impacted.”

All these comments highlight the fears of Bitcoin’s rising price by investors, coupled with President-elect Joe Biden’s impact on cryptocurrency.

Popular Fed chair Jerome Powell has also downplayed the fears that the interest rates could rise higher, sooner than expected. That is, meaning that it is still early to insinuate any changes that could be made to the central bank’s dovish monetary policy.

With the pandemic end not in sight yet, the Fed plans to maintain the zero interest rates until inflation has increased to the 2% target.

Also, the march induced price crash has seen many changes in the stock market. Investors have piled into companies such as Tesla TSLA -2.2%, which saw the price rose by more than 600% in the past 12 months.

All these show that the pandemic also has an adverse effect on the stock market.

Mark thinks that the law of supply and demand drives the Bitcoin price. According to him, “Bitcoin is just like any stock.”

But one positive thing to take from Mark Cuban critics is that he acknowledged the fact that Bitcoin and the cryptocurrency industry are evolving- courtesy of the various DeFi projects.

He believes that Bitcoin and cryptocurrency technological goals can be utilized to recreate traditional financial instruments such as loans and insurance. Doing these will change the market behavior of Bitcoin and cryptocurrency.

Mark doesn’t think that DeFi could have an impact on the factors that drives Bitcoin. However, he acknowledged that it is still too early to say so.

According to the Defi Pulse data, investors have invested more than $22 billion into various DeFi projects in the last year, raising concern over the future of decentralized finance.

Most of the Defi projects to watch out for this year includes; Kava, Ren protocol, Defi yield protocol (DYP), Band protocol, ox, etc. However, with the Defi market surge, it is hard for any investor to predict the project that is worth investing in.

However, with the rising investments in Defi, we are expecting more profits in the long run.

It is worthy to note that cryptocurrency has come to stay. With the various economic inflations ravaging countries, we are expecting more investments in cryptocurrency.

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Crypto enthusiast since 2016, learning every day about blockchain and the different projects that appear in the crypto-ecosystem. I write about cryptocurrencies because I want to help people get to know this exciting world.

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