„No matter what happens, all countries will find ways to maintain their fiduciary sovereignty and, above all, tax and control their citizens,“ said Mark Cuban.
Recently Bitcoin has been gaining a lot of strength as a „store of value“, with many speaking for investors to bet on the currency as a form of protection in times of crisis. But for Mark Cuban, one of the world’s most recognized investors, Bitcoin is not a really interesting tool for this kind of situation, although it has the potential to continue valuing in the near future.
In an e-mail interview with Forbes, Mark Cuban spoke about his vision of how Bitcoin is currently, considering its recent valuation.
While many are optimistic about what is happening with cryptomime, even with respected names predicting cryptomime at values above $100,000, Cuban has not changed his view about how Bitcoin „has no chance of becoming a reliable currency.
„My thinking about Bitcoin hasn’t changed yet (…) I think the discussion about Bitcoin replacing the fiduciary currency is counter productive.
No matter how much Bitcoin fans want to pretend that it is a protection against catastrophic scenarios, it is not.
Countries will take all the necessary steps to protect their fiduciary currencies and the ability to tax taxpayers, so the people who most believe that Bitcoin is more than a reserve of value are the ones who most suffer the chance of government intervention“.
The „race“ against Bitcoin by the Central Banks is something that has already begun and is slowly gaining momentum. China is undoubtedly the country that is ahead in this race, with the considerable advance of Digital Yuan. Some are calling it a monetary revolution, with Bitcoin leading in several respects.
The key point is that no matter what happens, all countries will find ways to maintain their fiduciary sovereignty and, above all, tax and control their citizens. Thus, for Cuban, Bitcoin becomes „just“ an investment asset and not a great savior of the world.
„As we can see in China and elsewhere, countries are more than capable of creating their own alternatives“.
Despite everything, Mark Cuban believes that Bitcoin will be driven by supply and demand
Billionaire Mark Cuban, Bitcoin critic (BTC)?
Billionaire Mark Cuban – Reproduction/flickr
Curiously, during the e-mail interview with Mark Cuban, the investor spoke about the possibility of Bitcoin’s growth because of supply and demand, something that has become the main focus of investors in recent years.
„Bitcoin is a store of value just like gold, and is more a religion than the solution to any problem. With this in mind, unlike gold, because of the finite number of BTC, and the nature of HODLing, when demand exceeds supply, the price will rise“.
Recently, an increase in demand has been noted throughout the cryptomorphic ecosystem, mainly from institutional investors. Even so, Mark Cuban is still not a big supporter of the currency, again comparing the usefulness of Bitcoin to a banana.
„The Bitcoin is what it is, something that enough people have accepted as an investment asset. A banana has more utility, potassium is a valuable nutrient for all people on the planet, but while people have accepted Bitcoin as a digital version of gold, it is an investment“.