As the 2024 presidential race heats up, a new debate has emerged over Silicon Valley's recent support for former President Donald Trump's comeback attempt for the White House. According to billionaire investor Mark Cuban, this support may have less to do with Trump’s pro-cryptocurrency regulatory stance and more to do with a calculated move to “inflate” the price of bitcoin.
Cuban sparks debate on Trump, Silicon Valley and bitcoin
In a series of x.com/mcuban/status/1813591281970348264″ target=”_blank”>social media posts On Wednesday, Cuban noted that Trump's pro-crypto stance, while favorable, may not directly affect the price of cryptocurrencies.
Instead, Cuban argues that the crucial factor lies in possible changes to the Securities and Exchange Commission (SEC) that could make it easier for bitcoin-conference-reactions/” target=”_blank”>crypto companies.
But what could boost bitcoin's price, Cuban said, are lower tax and tariff rates, which have historically had an inflationary effect. “It's a bitcoin play,” he added, referring to bitcoin-price-surge/” target=”_blank”>Trump's tax agenda
Drawing attention to the global uncertainty surrounding the geopolitical role of the United States and the potential impact on the US dollar as the predominant reserve currency, Cuban suggests that these factors align favorably for a significant acceleration in the price of btc.
btc as a global currency?
Cuban also emphasized the global nature of the bitcoin market and the finite supply of 21 million btc, making it an attractive asset if geopolitical uncertainty and a falling U.S. dollar lead to a global search for a “safe haven” currency. “How high can the price go? Much higher than you think,” Cuban added.
Although Cuban, who is also a veteran Cryptocurrency InvestorCuban admits that such a scenario may seem remote in the U.S. economy, noting that countries battling hyperinflation have already seen a surge in bitcoin adoption to safeguard savings. Cuban added:
And if things really do go beyond what we can imagine today (and I'm not saying they will. Just that this has a chance of something more than zero), then btc will become exactly what the Maxis envision: a global currency.
Recent technology/4775501-silicon-valley-trump-vance-support/”>reports Data indicates that Trump’s announcement that Senator JD Vance will be his running mate has bolstered his support among Silicon Valley conservatives. Notably, figures within the cryptocurrency industry have also leaned toward Trump, expressing frustration with the Biden administration’s approach to regulating digital assets.
Kraken co-founder and president Jesse Powell, donated $1 million for Trump's 2024 election campaign, while the Winklevoss twins, co-founders of the Gemini exchange, and Cathie Wood, CEO of Ark Invest, have expressed their support for Trump, citing his progressive stance on cryptocurrencies as a key factor.
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At the time of writing, bitcoin was trading at $64,560, marking a 1-month high after a sharp drop since June that saw the price of the largest cryptocurrency hit a 6-month low of $53,500.
Featured image from LA Times, chart from TradingView.com
