This week was a scary one for cryptocurrency. The market crashed over 20%. There continues to be widespread uncertainties in the sector.
I recently listened to an extensive podcast by Mark Cuban which delved into many of the current issues regarding cryptocurrency and it was full of valuable information. It was released 4 days ago. Firstly, it is important to note that Mark Cuban is invested in cryptocurrency and has been an enthusiast of decentralized monetary efforts for quite some time. He also is very wealthy and well connected which means he undoubtedly has access to more information than the average cryptocurrency holder. While listening to this podcast, many ideas sparked of my own.
I believe there might not be a better person to learn from about technology than Mark Cuban who has access to more information than most and continues to stay up to date with current trends. Mark Cuban experienced the “dot com” evolution from the time it started and played a key role in moving traditional sports broadcasting onto the internet (with broadcast.com). He is therefore very familiar with technological revolutions, and takes pride on staying on top of new technology. He believes cryptocurrency adaptation is definitely on the horizon and Mark Cuban made a very interesting connection with the development of the internet.
Mark explains that during the evolution of the internet, many large companies were in a highly competitive environment that forced some to “win” and others to “lose”. Those that lost basically disappeared, failed and lost money. He explains that the same thing must occur with cryptocurrency as there are currently so many. Although each cryptocurrency is meant to solve a specific issue, which is the reason why they exist, they will eventually become obsolete. I thought this was a very interesting connection and valuable insight.
My take on this connection, if history repeats itself, is that we are due for a crypto bubble crash, just like we saw with the dot com bubble. If the many economists are right that we are due for a market crash within the next few years, perhaps the cryptocurrency bubble crash (with a $1.6 Trillion market cap) will be the instigator.