Shark Tank star Mark Cuban says that much like the emerging days of internet stocks, investors who can figure out which digital assets have the most utility going forward will be successful in the world of crypto.
In a new interview with Fox Business, the billionaire says that he is a big believer in the future of crypto but acknowledges that not every digital asset will make it – much like the dot-com bubble days before the turn of the century.
“You have to look at investing at crypto the same way you look at investing in anything. Do you think there’s a value proposition there that consumers or businesses are going to use? If you think the answer is yes and you think it provides enough growth, then you invest. If the answer is no, then you don’t.
The challenge in crypto, like the early days of internet stocks, is separating the signal from the noise. Back in 1995, when all the internet companies were going public with only a website, people got all excited and invested in things just because they were there, and you see some of that with crypto as well.
But the reality is, then like now, if you find a crypto token or application that really provides value and utility, that’s where you invest and that’s what I look for.”
The dot-com bubble was an economic event in the 1990s that saw venture capitalists and retail investors alike pour funds into nascent internet companies before many of them went under in the early 2000s.
Cuban himself has chosen a few digital assets to invest in. Just last week, the business magnate revealed that he has heavily invested in both leading smart contract platform Ethereum (ETH) and its competitor Polygon (MATIC).
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Julia Ardaran/Alexxxey