Shark Tank star and Dallas Mavericks owner, billionaire Mark Cuban has shared his updated views on bitcoin after the price of the cryptocurrency hit all-time highs. He compared bitcoin to gold but believes bitcoin is not a solution to any problem as countries will take steps to protect their currency.
Mark Cuban says Bitcoin is more like religion
While the price of bitcoin has always peaked repeatedly last week, American billionaire Shark Tank star and Dallas Mavericks owner Mark Cuban is still skeptical about the cryptocurrency.
He was quoted by Forbes in an article published on Thursday as saying, “My thoughts have not changed” about bitcoin, adding:
It is a store of value as gold that is more of a religion than a solution to any problem.
Bitcoin has often been compared to gold and touched as an inflation hedge. Making the same comparison, Cuba noted that “unlike gold, due to the limited availability of BTC and the nature of HODLing, when demand exceeds supply, the price will rise and vice versa. ”
Several renowned hedge fund managers and financial analysts have even said bitcoin will likely outperform gold, including billionaire hedge fund manager Stan Druckenmiller. Deutsche Bank analysts recently said investors are choosing bitcoin more than gold to hedge against dollar risk and inflation. More companies and institutional investors are also moving their funds from gold to bitcoin, including British investment firm Ruffer.
“I think the whole conversation about BTC or any crypto replacing fiat currency is counterproductive,” Cuba asserted. “No matter how much BTC fans want to pretend to be a hedge against doomsday scenarios, it is not,” he claimed, emphasizing:
Countries will take steps to protect their money and tax ability, so the more people think this is anything more than a store of value, the greater the risk of government intervention they face.
Cuba also believes that central banks will offer some alternatives if needed, including central bank digital currencies (CBDCs). “As we see in China and elsewhere, countries are more able to create their own alternatives,” he chose.
The Dallas Mavericks owner of the National Basketball Association (NBA) concluded that “It’s a BTC, something that many people have agreed is an irrecoverable asset.” However, he insisted “Banana has more utility, potassium is a valuable nutrient for every person on the planet, but as long as people accept BTC as a digital version of gold, it’s unstable.” In September last year, he told Wired that he would rather “have bananas than bitcoin,” stressing that he could at least eat a banana.
Meanwhile, Cuba Shark Tank co-star Kevin O’Leary said early this month that it is ready to put 5% of its portfolio in a bitcoin trading-exchange (ETF) fund.
Do you agree with Mark Cuban about bitcoin? Let us know in the comments section below.
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