17 July 2024
As the 2024 presidential race heats up, a new debate has emerged regarding Silicon Valley’s recent support for former President Donald Trump’s comeback bid for the White House. According to billionaire investor Mark Cuban, this support may have less to do with Trump’s pro-crypto regulatory stance and more with a calculated play to “pump” the Bitcoin price.
Cuban Sparks Debate On Trump, Silicon Valley, And Bitcoin
In a series of social media posts on Wednesday, Cuban highlights that Trump’s pro-crypto stance, while favorable, may not directly impact the price of cryptocurrencies.
Instead, Cuban argues that the crucial factor lies in the potential changes at the Securities and Exchange Commission (SEC) that could facilitate the easier operation of crypto businesses.
But what could drive Bitcoin’s price, Cuban said, are lower tax rates and tariffs, which historically have had an inflationary effect. “It’s a Bitcoin play,” he added, referring to Trump’s tax agenda and Silicon Valley’s appeal to those policies.
Drawing attention to the global uncertainty surrounding the geopolitical role of the United States and the potential impact on the US Dollar as the prevailing reserve currency, Cuban suggests that these factors align favorably for a significant acceleration in BTC’s price.
BTC As Global Currency?
Cuban also emphasized the global nature of the Bitcoin market and the finite supply of 21 million BTC, making it a compelling asset if geopolitical uncertainty and the decline of the US Dollar lead to a global search for a “safe haven” currency. “How high can the price go. Way higher than you think.” Cuban added.
Although Cuban, who is also a long-term crypto investor, admits that such a scenario may seem remote in the US economy, he points out that countries struggling with hyperinflation have already seen a rise in adopting Bitcoin to safeguard savings. Cuban further said:
And if things really go further than we can imagine today (and I’m not saying they will. Just that this has a possibility somewhere above zero) , then BTC becomes exactly what the Maxis envision. A global currency.
Recent reports indicate that Trump’s announcement of Sen. JD Vance as his running mate has bolstered his support among Silicon Valley conservatives. Notably, figures within the crypto industry have also gravitated toward Trump, expressing frustration with the Biden administration’s approach to digital asset regulation.
Kraken’s co-founder and chairman, Jesse Powell, donated $1 million to Trump’s 2024 election campaign, while the Winklevoss twins, co-founders of Gemini exchange, and Cathie Wood, CEO of Ark Invest, have voiced their support for Trump, citing his progressive stance on crypto as a key factor.
At the time of writing, Bitcoin was trading at $64,560, marking a 1-month high after a steep decline since June that saw the price of the largest cryptocurrency hit a 6-month low of $53,500.
Featured image from the LA Times, chart from TradingView.com