Mark Cuban was the latest bigwig investor to liken the rise of cryptocurrencies to the early days of the internet.
Cuban bullish on crypto
If you want to convince someone to invest in cryptocurrencies, tell them it’s like the internet at the beginning.
That seems to be the go-to approach among A-level entrepreneurs, judging by how several US entrepreneurs have expressed their opinion about crypto. First, Seek founder Matt Rockman compared crypto to the early days of the internet. Now, Mark Cuban, billionaire owner of the NBA franchise Dallas Mavericks, echoed his words in almost identical fashion.
Cuban said that “It’s like the early days of the internet,” and that it was 1995 for cryptocurrencies, hinting at the fact that most development was yet to come. Asked about Bitcoin’s utility as an inflation hedge, Cuban said that he believes this to be “little more than a marketing gimmick” and that crypto may not be for everyone at the moment, but that in the next ten years, some of it would succeed ad create its own economy.
Cuban is far from a stranger to cryptocurrency investments. Quite the opposite, as he is known to own at least one Crypto Punk and Bored Ape NFT each, along with investments in DAOs. His Dallas Mavericks franchise accepts the meme coin Dogecoin for payments and has partnered with a crypto payments firm to integrate cryptocurrency payments with its online presence.
Cuban has also expressed conviction in decentralised finance, saying that “smart contracts can change the world” and not shying away from investing in highly speculative and risky DeFi protocols himself. He said his cryptocurrency investments are split 60%, 30%, and 10% in Bitcoin, Ethereum, and altcoins, advising that the utility of a token must be established before investment because the utility fuels value creation.
Stars and politicians increasingly bullish on crypto
Although star investors and celebrities do not move markets (unless you are Elon Musk tweeting about Dogecoin), their crypto attitudes are a good indicator of the emotional sentiment of retail investors.
During the 2021 bull run, NFTs became incredibly popular among sports stars and A-list celebrities in the entertainment industry: everyone from Stephen Curry over Snoop Dogg to Lindsay Lohan started buying NFTs. Tom Brady penned a partnership with a big cryptocurrency exchange, though he was far from the only star to do so. Several AFL sports franchises signed multi-year partnership contracts with cryptocurrency exchanges.
Politicians, too, found that they stand to gain from boarding the crypto train, with the mayors of Miami and New York City competing to be the first politician to accept a salary in Bitcoin. As crypto markets enter a consolidation phase, investors should keep in mind that these attitudes are not going to be simply swept under the rug. If anything, they are indicative of a broader change in sentiment: crypto is mainstream now, and the sector should switch its focus from fighting for acceptance and recognition to building sustainable and practical solutions with everyday utility.