Mark Cuban is a bubble!

Mark Cuban recently commented on bitcoin, and according to some news articles, that resulted in a bitcoin price correction. http://www.cnbc.com/2017/06/06/mark-cuban-calls-bitcoin-a-bubble-price-falls.html

What I like about Mark

I'll start off by saying a few positive things about Mark Cuban. He is a very successful business man. He got where he is today by putting his money where his mouth is. There are a million so called pundits in the media, but very few actually succeed by betting on their own ideas (most just preach and don't actually bet on their own ideas). Having watched him on Shark Tank, I'm not his biggest fan but I do respect the man for what he has accomplished. Is that a few yet?

Why Mark is wrong

Someone with Mark's level of influence should be more responsible and think before making irrational comments like that. Do some research first, learn about the technology and what it is used for.

Mark states, "I think it's in a bubble, I just don't know when or how much it corrects".

I think the US housing market is getting a little hot, but I don't know when or how much it corrects. And so do a lot of people because it happens every so many years, but that doesn't mean much. Am I going to sell my house and rent while I wait for the next housing crash? No way! I may be renting for years and miss out on the upside...and my wife probably wouldn't be happy with that! In predicting bubbles or crashes, timing is everything. If you don't know when it will correct or how much, then you're basically saying you have no idea.

"When everyone is bragging about how easy they are making $=bubble"

By that definition Tesla, Amazon, Facebook, and even cash rich giants like Microsoft, Apple, etc are also in a bubble. Shark Tank is a bubble!

It sounds like Mark is basing his bubble theory entirely on the rapid rise of pricing. If you look at the charts, crypto as a whole has risen much much faster than the stock market. However, if you look back at the charts for Apple, it's similar...just happened over a longer period of time.

This is Apple's chart...not much different from the chart of total market cap of all Crypto Currencies below.

Why is the crypto market moving so much faster than an average stock chart? Japan legalized bitcoin as a currency just 3 months ago. Australia announced last month it is doing the same. Singapore announced within the last 2 weeks that it will put some of it's currency onto Ethereum. This space is young, hungry, and unregulated...stocks are regulated and slow!

Misinformation

There is almost no regulation, which means some people have info while others don't...and lots of misinformation as well. In the stock market world, that's called insider trading. Illegal for publicly traded stocks, but perfectly okay and rampant in the crypto world. And I'll agree that there are many crypto coins that are over priced relative to other crypto coins that have a viable product already. The ICO hype is also getting out of hand. This isn't very different than the stock market...there are over priced stocks, under priced stocks, and over hyped IPOs (snapchat!). In time, as the market gets all of the information and processes it, prices adjust.

• Was the BAT token worth 6x the initial investment on first day of trading? Based on 6600 for 1 ether ICO pricing, it's already down to 3X.
• Will ripple still be the number 3 coin after the market adjusts, I really really doubt it. I don't think it even belongs in the top 10...but that's a rant for another day.
• Is Tesla really worth more than Ford when Ford had 22 times the sales Tesla had in 2016? Tesla has a lot of potential, but come on wallstreet, you crazy. Don't get me wrong, I love the idea of Tesla...but I'm not paying $900 for a $100 bill.
• Were the Dallas Mavericks a bubble right after they won the NBA championships in 2011? They haven't done much after that.
• Is every product that gets on Oprah's show a bubble? Most experience exponential growth and then fade just as fast.

My point is that the market takes time to process and different analysts have different opinions. The Crypto world is young, it's growing fast, and governments/companies are scrambling to make sense of it...and figure out how to regulate/profit from it. There may be a few pimples forming in the crypto world, but it does not mean it's a bubble.

Lola thinks my laptop is a bubble...and wants me to play frisbee with her!