Mark Cuban, billionaire entrepreneur and owner of the Dallas Mavericks, believes Bitcoin (BTC) prices “will be way higher” than people think, primarily driven by its growing role as a “safe haven” asset for the world and limited supply.
Cuban made the prediction in a July 17 social media post, where he also shared his thoughts on Silicon Valley’s growing support for former President Donald Trump and its connection to Bitcoin.
Trump and Bitcoin
Trump has voiced strong support for the digital assets industry in recent weeks and is scheduled to headline the 2024 Bitcoin Conference later this month. The Republican party has also adopted his pro-crypto stance as the issue has become increasingly important for voters leading up to the November elections.
Meanwhile, the Democrats have continued to lag behind on their crypto policies, and the Biden administration’s recent decisions, including vetoing the bill that intended to repeal a controversial SEC accounting rule, have drawn significant criticism from industry leaders — with many openly endorsing Trump.
Cuban said that the recent support from tech leaders may not be primarily due to Trump’s stance on crypto but rather part of a broader strategy to influence Bitcoin’s market environment. He highlighted that lower tax rates and tariffs under a Trump administration could spur inflation, which has historically been favorable for Bitcoin’s price.
Additionally, Cuban noted that global uncertainty regarding America’s geopolitical role and the ensuing impact on the US Dollar as a reserve currency could create conditions for a significant increase in Bitcoin’s value.
‘Safe haven’
Cuban suggested that geopolitical uncertainty and a declining dollar might push Bitcoin to become a global “safe haven” for savings, similar to gold during economic turmoil. This means that as trust in traditional financial systems and currencies erodes, individuals and institutions may increasingly turn to Bitcoin as a reliable store of value.
Historically, assets perceived as safe havens, like gold, have appreciated during times of economic instability. Cuban’s analogy positions Bitcoin in a similar role as gold and believes it will benefit from crises that undermine confidence in fiat currencies.
He pointed out that this trend has already been observed in countries experiencing hyperinflation, where local currencies rapidly lose value. In such scenarios, people often turn to more stable assets to preserve their wealth.
For instance, in countries like Venezuela and Zimbabwe, where hyperinflation has severely devalued local currencies, Bitcoin has seen increased adoption as a hedge against economic instability. The trend can also be observed on a large scale in countries like Pakistan, Lebanon and Nigeria, where people have lost trust in the government’s ability to maintain a stable economy.
According to Cuban, the decentralized nature of Bitcoin, immune to government policy changes and inflation, makes it an attractive option for individuals looking to protect their savings.
As a long-term crypto investor, Cuban’s portfolio includes a significant portion of Bitcoin and investments in Ethereum and other altcoins. He views Bitcoin more as a store of value rather than a currency, comparing it to digital gold. Cuban believes that Bitcoin’s algorithmic scarcity will continue to drive its price higher.
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