https://s29.postimg.org/ihweaswyf/image.jpg

Earlier today Mark Cuban tweeted some thoughts on Bitcoin.

Shortly after, Bitcoin took a massive dump:

https://s14.postimg.org/wf6g2agkx/1496768633_bitcoin12hr.png

Mark was being asked several questions regarding Bitcoin and blockchain technology in general.

This was his tweet about Bitcoin that started the tumble:

https://s30.postimg.org/3xf1uz035/Screenshot_4.png

I respect Mark very much for being right on a number of different calls in the past.

A specific one I can recall was his wonderful call on Netflix. To this day, it has been a great call.

I also enjoy him very much on Shark Tank. He does a great job on there and for the most part offers decent deals to the participants.

However, regarding Bitcoin, I think he hasn't quite thought it all the way through.

I agree that Bitcoin could pull back at any time. It has pulled back roughly 178 times since 2013. I fully expect that trend to continue.

The real question when calling something a bubble is if you think it will never make new highs again. Otherwise any pullbacks and corrections are just volatility on it's way to higher highs that any long term investor should simply ignore.

If you think Bitcoin is a fad to be replaced by something else then ok, stick to your bubble call.

However, if blockchain technology is here to stay, like you mentioned in a later tweet I might add, then I think the odds of this being the highest price Bitcoin ever sees highly unlikely.

The tweet can be seen here:

https://s13.postimg.org/f7k2rviyv/Screenshot_5.png

If blockchain technology is the future, Bitcoin has a better chance than almost any other coin of realizing a big piece of that future.

Speed and scaling are certainly issues, but they are likely issues that can be solved.

If Mark is advocating to sell now so that you can get back in at a better price, well that is an option, but that is more trading than investing. There is no guarantee that there will be a better price or that you will actually get back in when that better price presents itself.

For those of us that are investing for the world changing technology, selling the rips and buying the dips is not what we are investing for.

It is very dangerous to throw around the bubble word Mr. Cuban. Make sure you quantify your time frame when doing so!

Saying something is due for a correction is very different than saying something is a bubble...

Stay informed my friends!

Sources:

https://twitter.com/mcuban

http://www.cnbc.com/2017/06/06/mark-cuban-calls-bitcoin-a-bubble-price-falls.html

Image Sources:

https://papodehomem.com.br/quebrei-minha-empresa/

http://www.cnbc.com/2017/06/06/mark-cuban-calls-bitcoin-a-bubble-price-falls.html

https://twitter.com/mcuban

Follow me: @jrcornel

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