These billionaires they think they know everything...

Just because you are a billionaire and you own your own basketball team and you get to star on your own show where people bring investments to you and offer you great terms doesn't mean you know everything.

Ok, those are pretty great things one Mark Cuban has going for him, but he is wrong about one thing.

He's wrong about bitcoin.

He's been aware of bitcoin for some time and commented on it quite regularly.

In fact, if I recall, he even allowed Mavs tickets to be purchased in crypto for a time, however, due to lack of demand I believe he discontinued that optionality.

Previously he referred to bitcoin as more of a collectible and that if you wanted to invest in bitcoin that's fine but you have to put the amount of money in it that you were comfortable blowing at a casino.

Even going as far to say that the casino has better odds.

Well, today he was it again...

Instead of referring to bitcoin as a beanie baby he chided it for something else.

He said that it is supposed to be a hedge for a doomsday scenario, but it doesn't work in a doomsday scenario.

And you know what, he's right!

If the world implodes and the internet goes down, what good is bitcoin?

Absolutely none, but in that scenario, what good is gold?

(Source: http://www.defyagingsolutions.com/blog/teachingolddogsnewtricks)

If bitcoin doesn't work, neither does gold

Gold has long been said to be a hedge for the doomsday scenario.

If governments collapse the world will be on the gold standard and you want to own some gold so you can trade and participate in the new economy.

However, that is a bunch of crap as well.

In that scenario do you think people are really going to accept gold?

Here's a brick of gold, now give me some food so I don't starve to death.

People aren't going to want gold, they are going to want things they can use, things they value.

The barter economy would quickly emerge and gold would have very little use case.

Well Mark, if bitcoin doesn't work for a doomsday play, neither does gold.

Gold currently has $10 trillion dollars in it and if you take everything that isn't used in electronics and jewelry you have a market that should be valued at least 90% lower than it is.

That means the vast majority of golds value comes from the belief that it works as a store of value and that it will continue to do so.

Bitcoin is the exact same way.

It's not a hedge against a doomsday scenario, it's a hedge against money printing by central banks that devalues fiat money on hurts savers.

Bitcoin provides a lifeline where users can hold something without feeling like they must spend it otherwise it loses value.

So, yes Mark you are technically correct, but per usually when it comes to bitcoin you are mostly missing the point.

Try talking Paul Tudor Jones, Stanley Drunkenmiller, Guggenheim Investments, MicroStrategy, Square, Grayscale, or any other number of incredibly wealthy and incredibly smart people who would be happy to explain to you why bitcoin...

Old dogs don't like to learn new tricks...

Stay informed my friends.

-Doc