According to CoinDesk, Bitcoin climbed more than 8% to a record high of $2,967.48 on Tuesday before the digital currency edged back. The reason for the retrace? Famed American investor Mark Cuban, said bitcoin was in a bubble.
Cuban Tweeted to his 7.1 million followers on Twitter, “I think it’s in a bubble. I just don’t know when or how much it corrects. When everyone is bragging about how easy they are making $=bubble https://twitter.com/fergulati/status/872115158440607747 …
He also said, “Anyone anywhere can buy a stock. #crypto is like gold. More religion than asset. Except of course gold makes nice jewelry. #crypto notsomuch”
Cuban had once told USA Today that bitcoin “got no shot as a long-term digital currency.”
Despite his remarks, bitcoin has seen an almost 200% gain this year and has even outperformed stock market benchmarks like the NASDAQ composite and the S&P 500. A lot o the gains are connected to Japan recently approving bitcoin as a legal payment method back in April.
Sean Walsh, a partner at Redwood City Ventures, unlike Cuban, thinks bitcoin’s price will keep moving higher. He said, “It may sound like hyperbole, but I simply cannot emphasize enough how mismatched the quantity of whole Bitcoins and the population of potential global buyers is. Bitcoin is available for purchase to 3 Billion Internet-connected adults across every country in the world. We produce just 1 new Bitcoin each month for 55,000 of these people to fight over.”