This Shar Tank investor says the current political scenario can push Bitcoin to become a global reserve asset.
Entrepreneur and investor Mark Cuban recently suggested that geopolitical instability and inflationary pressures could drive Bitcoin to become a global reserve asset.
The billionaire noted that rising support for former President Trump in Silicon Valley might indicate a “Bitcoin play” from the Big Tech sector. Cuban elaborated that the United States’ geopolitical role is increasingly uncertain and that inflationary pressures could intensify with the implementation of promised future tax cuts by the former president.
“What will drive the price of BTC is lower tax rates and tariffs, which if history is any guide (and it’s not always ), will be inflationary.”
Cuban argues the real driver for Bitcoin’s price will be inflation caused by lower taxes and tariffs, coupled with a weakened US Dollar as the global reserve currency. He sees this scenario making Bitcoin a global “safe-haven” asset, potentially reaching a much higher price than anticipated.
Cuban isn’t alone in his opinion. Earlier in 2024, a former US leader, Paul Ryan, spoke about how stablecoins could help the dollar stay strong around the world. He believes they can keep the dollar dominant despite high US debt and China’s growing currency, the yuan.
While fiat-pegged stablecoins share the same fundamentals as the currencies they represent, dollar stablecoins could boost demand for the greenback, potentially alleviating a debt crisis.
In Venezuela, economic hardships caused by sanctions, government corruption, and hyperinflation are driving more individuals to seek relief through cryptocurrencies. In 2023, digital assets accounted for 9% of the total remittances sent to the country.
The rise in crypto remittances highlights the advantages of low transaction costs and near-instant settlement times compared to traditional fiat remittance services.
Argentina provides another example of a population turning to digital currencies in response to severe inflation. With an annual inflation rate of 276%, Argentinians are adopting cryptocurrencies at a disproportionately high rate.
