Mark Cuban: While The US Prints Billions Of Dollars, Bitcoin Soars Up And Can Overtake Gold
Current global tensions, economic uncertainty, and the upcoming stagnation of traditional financial markets could play into the hands of Bitcoin. The well-known crypto critic, billionaire Mark Cuban, is convinced of this. He admits the idea that Bitcoin could be an alternative to gold and used as a refuge for storing assets.
According to Mark Cuban, the driver of the growth in demand for Bitcoin could be the collapse of the global economy. According to the financial experts, due to the spread of Coronavirus, the world may enter a phase of large-scale recession. Many of them are already comparing possible economic consequences of the “Great Depression”.
US “helicopter money” helps Bitcoin
This situation is “fueled” by measures taken recently by the US government. In particular, a mixed reaction in financial circles was caused by the printing of a colossal amount of money in the framework of the adopted anti-crisis programs to stimulate the US economy.
Mark Cuban noted the following:
“Now, favorable conditions are emerging for Bitcoin. We issue a lot of money, which in the future could turn into a collapse for the global economy. If we stop the spontaneous printing of dollars, Bitcoin’s ambitions to become “digital gold” will fail with a crash.”
Nevertheless, Mark Cuban believes that several powerful factors can also halt the “appetite” of the crypto community. In particular, when traditional markets plummeted, Bitcoin also fell to a record low during March 12, and its price dropped to $4,000.
The upcoming halving, decrease in the volume of crypto mining, instability of the digital currency to unpredictable changes in market conditions can also prevent Bitcoin from becoming a key asset. To attract new users, Bitcoin should become more accessible and understandable for society. Mark Cuban commented on this statement:
“Bitcoin can become an alternative to gold only when it is clear to everyone. The crypto community should think about simplifying financial transactions. There is one big problem: to spend Bitcoin, the user must convert it to another currency. Thus, despite all the slogans about decentralization, the crypto is indirectly dependent on regulators.”
Mark Cuban believes that Bitcoin is still inferior to gold and to overtake it, the flagship cryptocurrency needs to solve many problems. The advantage of gold is the ability to mint coins, which can be put into use. Cryptocurrency does not have such an opportunity.