Key Takeaways:
Billionaire television personality and owner of the NBA team Dallas Mavericks, Mark Cuban, has come out saying the recent wave of support for former President Donald Trump from Silicon Valley entrepreneurs is nothing but a play to boost Bitcoin (BTC) prices.
Mark Cuban Says Silicon Valley Support For Trump Is A Play To Pump Bitcoin
The pro-crypto Shark Tank judge, who has backed President Joe Biden for reelection, called the move a “Bitcoin play” on X. He argued that during the second Trump term, BTC’s price will be driven by the inflationary impact of his proposed lower taxation and higher tariff policies.
Cuban added that America’s geopolitical role in the current global instability, and its impact on the US dollar as the reserve currency, have aligned the stars for a Bitcoin price acceleration.
Over recent months, Trump has seen his support among tech leaders rising. The billionaire real estate mogul and TV personality has managed to woo some prominent Silicon Valley donors with his pro-crypto policy recommendations. The Mecca of tech is well known for its support of liberal ideologies and the Democrat Party.
The crypto industry is increasingly leaning towards Trump amid growing frustration with the Biden administration’s negative approach to cryptocurrency regulation.
Elon Musk And Winklevoss Twins Among Billionaire Tech CEOs Endorsing Trump
Tesla CEO and X owner Elon Musk officially endorsed Trump last week, after the 45th President was injured during an assassination attempt at a campaign rally in Pennsylvania. According to the Wall Street Journal, Musk plans to donate $45 million a month to a newly formed pro-Trump political action committee (PAC), called America PAC.
Other tech entrepreneurs like Joe Lonsdale, co-founder of big data analytics company Palantir Technologies, and Doug Leone and Shaun Maguire, partners at venture capital firm Sequoia Capital, have contributed $1 million a piece to the PAC.
Billionaire twins Tyler and Cameron Winklevoss, co-founders of cryptocurrency exchange Gemini, have also donated $2 million in BTC to the Trump campaign.
On Monday, Trump announced Ohio senator JP Vance as his running mate for Vice President of the United States. The Marine veteran and former venture capitalist’s addition to the White House ticket was cheered on by Silicon Valley executives.
Vance is a pro-Bitcoin politician who reportedly owns between $100,000 and $250,000 in BTC, stored in a Coinbase account. He also holds shares in one of the largest Bitcoin exchange-traded funds (ETFs) – the Fidelity Physical Bitcoin ETP (FBTC).
Trump Will Force An “Inevitable And Required” Change At The SEC Regarding Crypto
Cuban believes the reason why the crypto sector is backing Trump as their candidate for the White House is not his promise to support digital assets, but because of how he impacts Bitcoin’s price.
Trump’s pro-bitcoin and crypto stance is expected to make it easier to operate a related business in the country, as it will force “inevitable and required” changes at the US Securities and Exchange Commission (SEC), the investor added.
During his time at the White House, Trump called Bitcoin a scam. However, the GOP frontrunner has shifted his tune on Bitcoin and cryptocurrencies in recent months, even pledging to defend the rights of those who hold digital assets.
Last month, following a dinner meeting with executives of American Bitcoin mining companies, Trump declared his full support for the industry, calling for every remaining Bitcoin to be mined in the US. He wrote in a social media post that Bitcoin mining will make the country “Energy Dominant”
Trump is set to speak at the Bitcoin 2024 Conference in Nashville on July 27th.
Meanwhile, economists are doubtful about Trump’s policies to cut income taxes and raise tariffs on foreign goods, as they believe it could drive up inflation in the US, which has eased after peaking at a 40-year high under Joe Biden two years ago.
Geopolitical Instability And The Risk of USD Losing Reserve Currency Status Will Propel BTC
Cuban warned that if there is further global uncertainty and a situation where the dollar loses its reserve currency status, Bitcoin would become a “haven” for investors. He referred to the case of countries facing hyperinflation, where people are buying BTC as a means to protect their savings.
The billionaire investor added that if global events take a turn for the worst, then Bitcoin will become exactly what the maximalists envision – a sovereign global currency.
At the time of writing, Bitcoin (BTC) is trading at $64,676 – down 1.8% over the last 24 hours.
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