Billionaire owner of the Dallas Mavericks basketball team, Mark Cuban, shared his comment on the recent standoff between Wall StreetBets traders and Wall Street big funds.
Recall, thanks to the organized efforts of the WSB, the price of GameStop’s shares increased tenfold in just a few days, which led to large financial losses for many hedge funds, which were betting on the fall of the asset. According to Cuban, the “old-timers” simply have no chance in the fight against the “new generation.” And this statement also touches on the topic of cryptocurrencies.
Recall that entrepreneur Mark Cuban is one of several billionaires who have bitcoins at their disposal. Back in April last year, their amount was insignificant and amounted to only the equivalent of $ 130, which Mark received from the sale of tickets and souvenirs for the games of his club.
Fortunately, a lot has changed during this time. The day before, Cuban accidentally revealed his cryptocurrency address on the Ethereum network, which contained various coins for tens and hundreds of thousands of dollars. Well, this made it clear that the investor sees prospects not only for the main digital asset, but also for the same niche of decentralized finance. Therefore, it is worth taking Mark’s comments with increased attention – nevertheless, he has a huge investment experience.
What will happen to cryptocurrencies in the future
In a new blog post, Cuban noted that the “old generation” of investors is under serious pressure from the “capital preservation generation,” as Mark called young investors. Millennials can truly appreciate the potential of digital assets because they were born in a world where music is most often exchanged digitally, rather than in the form of records or cassettes.
Blockchain, unique tokens and smart contracts allow you to give real value to a virtual object. This is a real revolution in finance, and thanks to it, all economic transactions related to physical objects are rapidly losing their popularity, Cuban is sure. Here is another comment from an expert quoted by Cointelegraph.
This generation knows that a smart contract and the digital commodity it reflects, or a cryptocurrency asset, is a better investment than old-school things.
That is, the billionaire emphasizes that it is much easier for the younger generation to realize the benefits of digital assets and accept the fact that they have value. Let us remind you that aged people – especially bankers and officials – do not understand what exactly makes new investors invest in an asset that, among other things, cannot be touched.
On the eve of this opinion was voiced by the Governor of the Central Bank of Ireland Gabriel Makhlouf. At the same time, he recommended that all Bitcoin buyers be prepared to lose all their investment. Naturally, in the context of the first cryptocurrency, this statement has long been irrelevant: it still exists and has been working perfectly for more than twelve years.
Cuban notes that stocks are just another digital store of value, and that a new generation has simply found and exploited the inefficiencies of the legacy stock market system. Young investors realized that through teamwork and effort, they were minimizing Wall Street’s impact and also exposing the hypocrisy of hedge funds and brokerage firms. Here is a quote.
The happy fat folks on Wall Street became slow and mediocre in some ways, making them easy targets.
In other words, the enmity of Internet traders from Wall Street is only the beginning of the formation of a new paradigm, in which the basis of market relations will be not old institutions, but fresh blood. It is likely that in such circumstances, Bitcoin will become a highly coveted investment as the main digital asset.
At least Mark clearly has no doubts about it. Recall that at the end of December last year, he recommended large companies to follow the example of Bitcoin, that is, to limit the maximum number of their own shares. This means that Cuban has significantly overtaken many conservative investors who still consider Bitcoin and other cryptocurrencies to be some kind of high-tech fraud.
We think that the comments of the billionaire Cuban are slightly embellished, but they do highlight an important difference between the two sides of the financial world. Crypto fans have an important advantage over those who don’t understand them. First, such people respect the idea of decentralization – that is, systems without a central authority and with equal participants – which will clearly be the foundation of the future. Secondly, they can see the value even of those phenomena that cannot be touched with their hands, which opens up new horizons in their activities.
So it looks like a new generation of investors will indeed change the current system. And cryptocurrencies will surely be in the center of their attention.