Mark Cuban compares crypto to early internet, sees benefits of slowdown

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  • Mark Cuban compared crypto to the early Internet in terms of its believers and skeptics.
  • The ‘Shark Tank’ star said a crypto downturn would highlight the best opportunities in the space.
  • Cuban also defended NFTs, noting that collectible paints and cards also lack practical uses.

Mark Cuban compared cryptocurrencies to the early days of the internet in terms of hype and skepticism, predicted upheaval in the crypto space, and championed non-fungible tokens (NFTs) in a flurry of tweets this week.

“People Rejected the Net Like They Were Crypto,” Cuban Says tweetedadding that opponents have failed to grasp the revolutionary potential of networked computing.

The “Shark Tank” investor and Dallas Mavericks owner drew a parallel between dot-com fever two decades ago and crypto fervor today. He said an industry slowdown would temper rampant promotion and speculation, and help decentralized finance (DeFi), smart contracts and other real opportunities stand out from the crowd.

“The challenge is that we are at the gold rush stage where everyone is selling technology and/or hype rather than apps,” the Cuban said. tweeted. “Bear markets clean that up.”

The billionaire investor compared the crypto community’s arguments over the best tokens and platforms to debates over networks and operating systems in the early days of the internet. Eventually, the computer industry settled on defaults, in the form of Ethernet and Microsoft Windows.

“The same will happen with Blockchain,” said Cuban tweeted.

Cuban also touched on the recent crypto selloff, noting that venture capitalists have pulled out of the space, driving prices down.

“Crypto had a rush of investors subsidizing user bases,” he said. tweeted. “These VCs have been crashed and shut down. No inducements, no new users, Crypto is crashing.”

The investor argued in another tweet that, just as in the dot-com era, the greatest value of new technology lies in applications that solve problems, serve consumers, or increase profits and productivity.

However, Cuban dismissed the idea that NFTs are worthless because they have limited practical use.

“Neither does the Mona Lisa or any artwork, trading card or whatever, unless the owner sees something special in it,” he said. tweeted.

Read more: $1.5 trillion asset manager breaks down why bitcoin is ‘kryptonite’ for institutional investors’ portfolios, but identifies 4 areas they should invest in now for long-term growth

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