Mark Cuban: Silicon Valley’s Bet on Trump Is a ‘Bitcoin Play’

“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), might be inflationary,” he continued.

Trump’s marketing campaign has persistently 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 response to Cuban. The billionaire argued that the uncertainty typically related to Trump’s mercurial method towards overseas coverage may assist drive Bitcoin costs increased.

“Mix that with world uncertainty as to the geopolitical function of the USA, and the affect on the US Greenback as a reserve foreign money, and you may’t align the celebrities any higher for a BTC worth acceleration,” he mentioned in his publish.

Cuban mentioned these elements meant that Bitcoin may grow to be a world secure haven, with nations and other people trying to buy the cryptocurrency to guard their financial savings.

Trump has grow to be a greater draw for tech billionaires this 12 months, a sharp 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 help 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 assume increased Bitcoin costs have been the one issue driving Silicon Valley’s help for Trump.

“However it may be essentially the most rewarding and easiest,” he mentioned. “It is a complete lot simpler to test an app than it’s to develop a firm in an unsure setting.”

Cuban is not the one one that thinks a second Trump administration may damage the US greenback’s place because the world’s predominant reserve foreign money.

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 hurt dollar dominance though Trump has pledged to keep up it.

“Coverage and actions converse 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 “highly volatile and based on thin air.“

However the GOP nominee appears to have revised his opinion on crypto. In an interview with Bloomberg Businessweek printed Tuesday, Trump mentioned that the US must embrace crypto lest China seize and dominate it.

“Now, if I throw it apart, it should be picked up abroad, almost definitely China—they’re fairly superior in that sphere,” Trump mentioned. “I do not wish to be answerable for permitting one other nation to take over this sphere.”

On Monday, Bitcoin costs surged to a two-week high, topping $62,000, after Trump survived an assassination attempt on Saturday.

Representatives for Trump didn’t instantly reply to a request for remark from BI despatched exterior common enterprise hours.