Billionaire Mark Cuban predicts that Bitcoin (BTC) will become a global reserve asset. With a net worth of $5.4 billion as of 2024, the businessman and investor is no stranger to the world of digital assets. He recently speculated that geopolitical instability and rising inflationary pressures could push Bitcoin to become a global reserve asset.
Silicon Valley Supports BTC
Venture capitalists and other Silicon Valley figures have embraced Donald Trump’s bid to reclaim the U.S. presidency. The growing support in Silicon Valley for former President Trump could signal a “Bitcoin strategy” from the big tech sector, according to the billionaire.
Cuban explained that the geopolitical role of the United States is under discussion. In addition, rising inflation could be exacerbated by the implementation of future tax cuts promised by the former president.
Collectively, these developments are the perfect catalyst for a Bitcoin rally, according to Cuban. He doesn’t immediately assume these things will happen, but they’re not out of the question. If conditions continue to develop this way, Cuban envisions Bitcoin as a “global currency.” That’s exactly what Bitcoin proponents have always had in mind.
Last month, Cuban reported that Biden could lose the election because of his stance on cryptocurrencies.
The role of digital assets
It is no secret that paper currencies depreciate when governments decide to print money. This is also true for the US dollar. The US dollar is the primary currency for cross-border trade.
Earlier this year, former House Speaker Paul Ryan discussed the role stablecoins could play in saving the dollar and preserving the global value of the US dollar. Ryan argued that stablecoins are a way to maintain the dollar’s dominance despite extremely high debt levels and competition from the Chinese yuan. Although the fundamentals of fiat-pegged stablecoins are the same as the underlying currencies they represent, dollar-denominated stablecoins would increase demand for the dollar. This demand for the dollar would likely ease the debt crisis.
Inflation causes problems for paper money.
In Venezuela, economic hardships caused by sanctions, government corruption, and uncontrolled inflation have led more and more people to turn to cryptocurrencies for relief. Digital assets will account for 9% of total transactions to Venezuela in 2023.
Argentina is another example of a population that has been hit by inflation and is turning to cryptocurrencies. Argentina’s annual inflation rate is 276%. This has led to the population embracing cryptocurrencies at an extraordinary pace. The growing number of cryptocurrency payments is partly due to lower transaction costs and faster processing times compared to traditional paper transactions.
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