CNBC’s “Power Lunch.” The billionaire sees similarities between the rise of cryptocurrencies and the dot-com bubble, but notes bitcoin is real and is here to stay.
Fertitta, who’s also the star of reality show “Billion Dollar Buyer,” compared the cryptocurrency ecosystem’s rise to the dot-com bubble, stating that cryptocurrencies are “no different than anything new,” and that people seem to forget that just 20 years ago adding “.com” to the end of a company’s name helped its stock run-up. After pointing out that a lot of people made a lot of money thanks to bitcoin’s rise, he said he believes the flagship cryptocurrency is here to stay. He added that “we have a lot to learn about it,” and that his biggest reservation about it is that it isn’t insured by the government. The CEO notably stated:
“Go to the bank and try to withdraw a million dollars, they don’t have the money. It’s just paper. That’s all bitcoin is, is paper, but it’s not insured by the FDIC today. And until it’s insured, a lot of people are never going to buy it.”Despite the perceived setback, the billionaire businessman said that he could see his businesses accept the cryptocurrency in the future, as per his own words “it’s going to happen, that it’s real, that it’s just new.” The billionaire’s views seemingly counter those that claim bitcoin is “just a fad,” arguing the cryptocurrency will eventually be replaced. As reported by CCN, various hedge fund platforms have rejected cryptocurrency funds as clients, fearing it could be like “the Tamagotchi from 20 years ago.” Seemingly embracing the rise of cryptocurrencies and blockchain technology, Fertitta concluded:
“I mean, I remember somebody walking into my office and saying, ‘The world’s going to change. There’s this thing called the internet. And that wasn’t that long ago. So we have to remember this. It’s just something new and everything moves at a quicker pace today.”The billionaire’s comments come at a time in which bitcoin is seemingly stabilizing after dipping to $13,500 in a recent correction, as it is currently near $13,000 according to CCN’s price index. The cryptocurrency is down from an all-time high near $20,000 in 2017, gaining 1,900% at its peak last year. Featured image from YouTube/ESPN. https://www.ccn.com