Mark Cuban compared the recent volatility in cryptocurrency trading volatility to the 1990s dot-com bubble, predicting that bitcoin, ethereum and "a few others" would be equivalent to the tech giants who survived that bubble.
Cuban, the owner of the Dallas Mavericks, also advised crypto investors to hold and hedge the alternative digital currencies while comparing them to Amazon.com (AMZN) - Get Report, eBay (EBAY) - Get Report and Priceline.
"Watching the cryptos trade, it’s EXACTLY like the internet stock bubble," Cuban wrote in a tweet. "EXACTLY. I think btc, eth , a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting and thrived, like AMZN, EBay, and Priceline. Many won’t"
Last week, Cuban told his Twitter followers that he would run for president if bitcoin reached a price of $1 million with the promise that his administration would be able to donate 350 bitcoin to the Treasury each year of his expected term. The Treasury would then have to hold the coins for 10 years.
Last week, the total market capitalization for all cryptocurrencies rose above $1 trillion as bitcoin led a dramatic jump in valuation.
Bitcoin hit a record high of nearly $42,000 on Friday on continued interest in the digital currency as a hedge against inflation and an alternative to the falling dollar. The price of bitcoin has more than quadrupled in the past 12 months.
However, stocks fell on Monday as investors recalibrated their strategies amid expectations that proceedings to impeach current President Donald Trump will move forward, and as a surge in coronavirus infections continued to pummel the U.S.
At last check, bitcoin prices were down 19.7% to $31,100 with a market cap of $586.6 billion.