Mark Cuban says he has a “opposite opinion” on why Silicon Valley’s tech titans have determined to again former President Donald Trump.
Cuban defined that the outpouring of assist wasn’t a lot as a result of they noticed Trump as a “far stronger proponent of crypto.”
“That is good. However does not actually influence the value of crypto. It makes it simpler to function a crypto enterprise due to the inevitable, and required, modifications on the SEC,” Cuban wrote.
“What is going to drive the value of BTC is decrease tax charges and tariffs, which if historical past is any information (and it is not all the time), can be inflationary,” he continued.
Trump’s marketing campaign has constantly advocated for slashing taxes and imposing tariffs on China and Europe, each of which have been his signature financial insurance policies when he was final in workplace.
However that is not all, in accordance with Cuban. The billionaire argued that the uncertainty usually related to Trump’s mercurial method towards international coverage may assist drive Bitcoin costs greater.
“Mix that with world uncertainty as to the geopolitical position of the USA, and the influence on the US Greenback as a reserve forex, and you’ll’t align the celebs any higher for a BTC value acceleration,” he mentioned in his put up.
Cuban mentioned these components meant that Bitcoin may change into a world protected haven, with international locations and other people trying to buy the cryptocurrency to guard their financial savings.
Trump has change into a much bigger draw for tech billionaires this 12 months, a pointy distinction from his first presidential marketing campaign in 2016, when enterprise capitalist Peter Thiel was one of many few backers Trump had in Silicon Valley.
The GOP nominee now has the assist of Tesla CEO Elon Musk and enterprise capitalists David Sacks, Marc Andreessen, and Ben Horowitz.
When approached for remark, Cuban informed Enterprise Insider he did not suppose greater Bitcoin costs have been the one issue driving Silicon Valley’s assist for Trump.
“However it may be probably the most rewarding and easiest,” he mentioned. “It is an entire lot simpler to examine an app than it’s to develop an organization in an unsure surroundings.”
Half 2
How excessive can the value go. Method greater than you suppose. Bear in mind, the marketplace for BTC is world. And the provision has a remaining restrict of 21m BTC, with limitless fractionalization.Maintain that in thoughts as you take into account what occurs if due to geopolitical uncertainty and the…
— Mark Cuban (@mcuban) July 17, 2024
Cuban is not the one one that thinks a second Trump administration may damage the US greenback’s place because the world’s most important reserve forex.
In February, the US chair of the Official Financial and Monetary Establishments Discussion board, Mark Sobel, mentioned that Trump’s tax cuts and tariffs would damage greenback dominance despite the fact that Trump has pledged to take care of it.
“Coverage and actions communicate louder than slogans,” Sobel wrote in his paper earlier this 12 months.
To make certain, Trump’s place on crypto has modified vastly ever since his first administration. In 2019, Trump mentioned that he wasn’t a fan of cryptocurrencies as a result of their worth is “extremely risky and based mostly on skinny air.“
I’m not a fan of Bitcoin and different Cryptocurrencies, which aren’t cash, and whose worth is very risky and based mostly on skinny air. Unregulated Crypto Belongings can facilitate illegal conduct, together with drug commerce and different criminality….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
However the GOP nominee appears to have revised his opinion on crypto. In an interview with Bloomberg Businessweek revealed Tuesday, Trump mentioned that the US must embrace crypto lest China seize and dominate it.
“Now, if I throw it apart, it may be picked up out of the country, probably China—they’re fairly superior in that sphere,” Trump mentioned. “I do not wish to be accountable for permitting one other nation to take over this sphere.”
On Monday, Bitcoin costs surged to a two-week excessive, topping $62,000, after Trump survived an assassination try on Saturday.
Representatives for Trump didn’t instantly reply to a request for remark from BI despatched outdoors common enterprise hours.
