Bill Cuban investor Mark Cuban, who made his fortune from the dot-com balloon in the late 1990s, compared the current situation in the markets to dot-com and stated that a collapse might occur soon.
Billionaire investor Mark Cuban compared the current situation of stock markets with the Internet bubble in the late 1990s.
In an interview with Real Vision, Cuban likened the boom in daily trading to the dot-com balloon and said that many new traders were causing a rally that could soon collapse in the market.
Indeed, there have been striking increases in stocks lately. The shares of the companies included in the S&P 500 Index were valued up to 100 percent in the last month. On the other hand, the shares of some technology companies have doubled due to the epidemic. For example, the video conferencing application Zoom has reached a market value of twice the Ethereum with $ 50 billion recently.
According to Mark Cuban, the same dot-com balloon may have occurred in today’s markets, as the use of the Internet has brought massive increases from the collapse of the companies associated with it. The billionaire investor emphasizes that more and more people are entering and selling in the stock market recently, leading to overvaluation of prices. Again, the hard-to-understand rise in Hertz shares that took place recently was part of this madness. The shares of the car rental company, which went bankrupt, had increased by more than 900 percent.
This prediction of Cuban is critical. Because, during the big stock market crash in the second week of March, Bitcoin lost its value by 40 percent. It can be expected that a similar movement on the stock exchanges will have the same effect on the largest cryptocurrency.
Expressing his concern for those who do not have experience in the stock market, Cuban said that the boom in daily trading, some of which originated from mobile applications, made many people look like experts when markets rally.
Robinhood is an increasingly popular mobile stock market app. In this application, over 3 million new accounts that have been funded so far have been opened in 2020. The sharp increases in Hertz shares were also tied to Robinhood users.
Mark Cuban, who owned a fortune from the dot-com balloon in the late 1990s, has a net worth of over $ 4 billion today. Cuban, who is also the owner of the NBA team Dallas Mavericks, comes to the agenda from time to time with his comments criticizing Bitcoin.