Mark Cuban Reacts To Crypto, Bitcoin & Etherium Crash

The reality is you have to look for the utility or the value of any investment that you have to say why are people buying bitcoin. In reality, bitcoin just like an NFT is a digital version of art. We compared it to the Mona Lisa. Bitcoin is a digital version of gold. People say gold has real value as jewelry. Nobody needs gold jewelry. People like gold jewelry because it keeps a shine etc. There are a lot of reasons to love gold as jewelry, but if gold jewelry went away, the world wouldn’t change. There’s only really, there are a few manufacturing applications. But gold has value because people assign it value and those types of investments are called stores of value. They’re kind of like commodities like you just said bitcoins the same way. It just happens to be digital, it’s limited by an algorithm and how many that’s created. So, there’s a scarcity factor: you can’t just create it forever and because of that and because it’s easy to transfer it’s easy in some cases to use for cross-border payments between country people in different countries.

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There’s some utility, but most people buy bitcoin and own bitcoin like I do because other people own bitcoin just like people buy gold. Now you hear a lot of stories, Bitcoin is a hedge to inflation, gold is a hedge to inflation. It’s not. We’re having a lot of inflation right now. Bitcoin ain’t going up, we’re having a lot of inflation right now. Gold ain’t going up. They’ve bounced around pretty much where they are. So, you’ve got to understand, if you’re buying bitcoin. Its store value and like any store of value gold or otherwise. The price is based on supply and demand. When people are selling, more people are buying. It goes down when more people are buying and selling. It goes up and again that’s not a whole lot different than the stock market either. Tech stocks have gotten crushed worse than bitcoin and Ethereum now. Ethereum’s theorem is a little bit different right. Ethereum has some level of utility where you can use it for transactions. 

Most NFTS are bought and sold using Etherium so in order to buy a board ape for 100 Etherium you have to go buy that Etherium and so the more demand there is for board APEs or the apecoin or whatever that’s based on Ethereum the more value Etherium um the token is going to have and so when I look at any of my crypto investments that’s the first question I have what is the core utility of it what value does it serve. So, that’s why I own more Etherium than I do bitcoin now. That said again when all tokens like stocks have some level of speculators in it right people who aren’t long-term investors. They just want to buy because they think it’s going up. When a market loses those speculators we’re losing a lot of them now because interest rates are going up because if you had your choice of putting your hard-earned dollars in the bank and earning 0.1 interest. You’re probably going to speculate more but now that inch rates are going up. People are speculating less and you can’t borrow money to speculate as inexpensively. They speculate even less and, as a result, stock prices are going. I own amazon, I own Netflix. Those prices have gone down more than my bitcoin and my Etherium has gone down but that’s just the way it goes and so at this point in time what I’m doing is looking to see or is there anything there that’s gotten, so cheap that it’s time to really take a strong look at starting to buy some. I’ve dabbled when Etherium gets down under.

Let’s say eighteen hundred dollars I’ll buy a little bit when bitcoin gets down under twenty-eight thousand. I’ll buy it just a little bit because it’s really hard to predict how low it’s going to go. So, I’m not. I haven’t gone all-in yet. I look at Dallas and say: how can they change how companies work? How do people do business right? One of the big things that are happening right now. Employees are starting to get a little bit more traction and having an impact at the companies that they work for because, at least, as of now there’s more jobs than there are employees. It’s not hard to leave your job and find another job, possibly paying even more. Companies are having to pay more to keep good people. 

Employees are getting more and more power and that power is an example of why Dao’s May started to have an impact in REG in startups going forward. I’m starting to talk to companies now that are saying rather than creating an llc or rather than creating a subchapter s corporation and incorporating in Delaware. I’m going to create a company as a Dow. I’m going to pay my employees good wages because they need to be compensated. But at the same time I want them to participate more in how we govern the company. We’re going to give them tokens and we’re going to post things, so that they can vote on different business decisions. I think we’re really just not even in the first minute of that industry and that happening. But, I think that’s the future of Dao’s where it may be a better way to do a startup that allows your employees to be more participants and contribute ideas, and vote on ideas, and make it more democratic, more progressive. If you start to see some companies that achieve some success that way. I think you’ll see more and more Taos take place if you don’t eat, sleep and drink your business 24/7 because that’s how much you love being part of it. You’re probably not right for me as an investor and I’ve made. I say this because I’ve made so many mistakes. I’ve gotten it wrong, gotten so many investments wrong. That I’ve learned what to look out for the crypto stuff is exciting for me. But I like it more for business applications, for content. It’s going to be great, I’d like to see college textbooks done as an NFT where you can take like a Kindle reader and make it part of an NFT. 

You take your class, you take 1 class, and law school and all the books you have to read. If they’re an NFT when you’re done with it at the end of your semester – you just sell it. The author and the publisher get their share and you don’t have to go through all that hell of do I buy a new one, a used one. What do I do with it? That I just spent 300 for the stupid textbook that I’ll never use again. There are a lot of valid applications there. I think in business, we talked about Dows and how they may change how businesses are started. 

I think that the distributed aspect of approval right the centralization aspect of it so things like insurance approvals right now. Insurance is very vertically integrated, so you buy your insurance policy or have your insurance policy and then you have to go through your pre-approval and if they don’t give you the pre-approval, you go to their boss and their boss in their box when there is a better way to do it. It would be in a decentralized manner as part of a Dow where you’ve got a thousand nodes who are trained on how to approve or disapprove an insurance claim or pre-pre-claim. You just let them vote and if you know 51 say “yes”. It’s approved and if not – not.

This article is a transcription of a video made by Jamie Tree

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