Business tycoon Mark Cuban has given his thoughts on the increasing support of the tech giant from the Silicon Valley for the former president of the United States, Donald Trump, and linked it to Bitcoin. According to Cuban, Trump could greatly impact the cryptocurrency market, especially Bitcoin.
Mark Cuban’s Bitcoin Prediction
According to Cuban, Silicon Valley’s backing of Trump is not primarily due to Trump’s pro-crypto position but to possible changes at the SEC that would make it easier to run a crypto business.
Concurrently, the CEOs and businessmen from Silicon Valley have recently endorsed Trump, which is indicative of the change in the political stance owing to the frustration with the policies of President Biden.
Part 1
Here is a contrary opinion on the emergence of Silicon Valley support for former President Trump. Which like all my opinions on here, probably won’t be popular.It’s a bitcoin play.
Not because the former President is a far stronger proponent of crypto. That’s nice.…
— Mark Cuban (@mcuban) July 17, 2024
Some of the high-profile personalities that have endorsed the project are Joe Lonsdale, Marc Andreessen, Ben Horowitz, and the Winklevoss twins. However, Elon Musk, who has supported Trump in the past, has denied plans to donate to the super-PAC supporting Trump.
According to Cuban, Trump’s penchant for supporting low tax rates and tariffs may cause inflation, which, together with geopolitical risks, will be favorable to Bitcoin.
“Lower tax rates and tariffs could be inflationary,” Cuban notes. “Combine that with global uncertainty about the geopolitical role of the USA and the impact on the US Dollar as a reserve currency, and you have a perfect setup for BTC price acceleration.”
Bitcoin as a Global Safe Haven
Mark Cuban goes further and explains how Bitcoin could become a safe haven for the entire world. He notes that due to its limited supply of 21 million Bitcoins with unlimited fractionalization, its value may increase during periods of geopolitical risk and diminishing confidence in the standard currencies held in national reserves.
This situation resembles the current conditions in the countries that have hyperinflation, and here Bitcoin already acts as a means of protection against the loss of people’s savings.
’BTC could be what countries and individuals look to buy to protect their savings,’ Cuban continues. “This could push BTC to become exactly what its proponents envision: a global currency.”
Growing Tension with U.S. Regulators
The crypto industry has been keenly observing the interaction between the sector and the U. S. regulators, especially the SEC. Currently, there are increasing concerns about the change in leadership at the SEC, with people like Mark Cuban and US Congressman Tom Emmer demanding the removal of SEC Chair Gary Gensler. Cuban has been vocal about his disapproval of Gensler, even calling on President Biden to dismiss the SEC chair recently.
US Senator Cynthia Lummis also earlier expressed how Bitcoin reserves can help cement the supremacy of the USD. Lummis, who is a supporter of cryptocurrencies, believes that Bitcoin can help support the dollar given the current escalation of sanctions and changes in the financial landscape.
Similarly, United States Treasury Secretary Janet Yellen has noted that the US dollar may lose its dominance due to the imposition of many sanctions. Given the search for options to the dollar, organizations such as BRICS are considering settlement in local currencies, which would drastically decrease the proportion of dollar-based transactions and affect the US economy.
”The more sanctions the US puts in place, the more countries will turn to BRICS to find ways of conducting financial transactions that don’t involve the US dollar,” Yellen said.
This shift towards other currencies also points to the possibility of Bitcoin becoming a safe haven currency in the global financial system.
Read Also: PEPE, SOL, ETH Receives Major Support From Binance, Prices To Rally?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
