Recently, at the Vanity Fair New Establishment Summit in Los Angeles, billionaire investor Mark Cuban confirmed with Bloomberg’s Emily Chang that he has purchased several bitcoins through the Swedish stock market, Nordic Nasdaq.
In response JPMorgan CEO Jamie Dimon’s criticism towards bitcoin, stating that the concept of intrinsic value does not exist, Cuban stated:
“It is interesting because there are a lot of assets which their value is just based on supply and demand. Most stocks, there is no intrinsic value because you have no true ownership rights and no voting rights. You just have the ability to buy and sell those stocks. Bitcoin is the same thing. Its value is based on supply demand. I have bought some through an ETN based on a Swedish exchange.”
Optimism Toward Bitcoin Is Rising With Investors
Cuban is correct in pointing out that the value of assets and stocks rely market trends investor sentiments. Government-issued currencies or fiat money is one example of an asset that does not solely rely on the market, because its value is set and heavily controlled by central banks.
Cuban’s understanding and headlining views of the cryptocurrency market and the structure of bitcoin, it is important to acknowledge that Cuban had consistently criticized bitcoin since 2014, describing it as a bubble. In June of this year, Cuban said:
“I think it’s in a bubble. I just don’t know when or how much it corrects. When everyone is bragging about how easy they are making dollars, it equates to a bubble. I’m not questioning value. I’m questioning valuation. Anyone anywhere can buy a stock. cryptocurrency is like gold. More religion than asset. Except of course gold makes nice jewelry. Cryptocurrency not so much.”
Since then, Cuban’s viewpoint of the cryptocurrency market has reversed. Partly due to the increasing demand from global investors and traders for bitcoin, which Mark Cuban cannot even ignore. Last month, Peter Schiff, the CEO of Euro Pacific Capital, who has also continued to criticize bitcoin for many years. In a similar reverse stance, Schiff revealed that the parent company of his gold company, SchiffGold, has integrated bitcoin and started to offer brokerage services for its clients.
When the price of bitcoin surpassed $1,000, many experts and investors described the cryptocurrency as a scam, a fraud, and a bubble. When the price of bitcoin surpassed $2,000, the talks around bitcoin being a fraudulent currency declined and investors like Cuban and Schiff persistently described it as a major bubble, comparing it to the Tulip Mania in the 1600’s.
When the price of bitcoin surpassed $4,000 and a market cap of $73 billion, the perception toward cryptocurrencies and bitcoin began to shift favorably. Well-known skeptics. such as Cuban and Schiff, have clearly indicated their interest towards bitcoin and its future potential.
Over the last year, Bitcoin and cryptocurrency markets have seen an increased appeal to high profile and large-scale investors in the traditional technology and finance sectors. As the adoption of bitcoin as a digital currency, store of value, and safe haven asset continues to grow at a rapid rate, in the next two years, banks, financial institutions, traders, and investors will be driven by demands in the marketplace to adopt and invest in bitcoin.