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According to Mark Cuban Bitcoin is a religion

Photo of: Nathan VDH
by Nathan VDH

Billionaire Mark Cuban does not adhere to Bitcoin, which he compares to a “religion more than a solution”. Nevertheless, agnostic investors acquire Bitcoin as an alternative to gold.

Bitcoin is approaching the $25,000 mark. The price is benefiting from the growing interest of institutional investors. However, this is not always enough to convince. Billionaire Mark Cuban is sticking to his guns.

Hostile to Bitcoin, he once considered bananas superior to cryptocurrencies as a means of exchange. The investor is once again asserting himself as a detractor of the asset, to which he refuses the title of a credible financial instrument.

For Cuban, crypto users are confused about Bitcoin’s capabilities. Thus, they should be careful not to think of it as “protection against disaster scenarios”. Likewise, crypto will never replace fiat currency.

“No matter how much BTC fans want to pretend that it’s disaster protection, it’s not,” insists the owner of the Dallas Mavericks NBA franchise.

Bitcoin is “a store of value like gold, which is more of a religion than a solution to a problem,” he points out again. The billionaire also warns of future state regulatory measures.

“Countries will take steps to protect their currencies and their ability to tax. So the more people believe that it is something other than a store of value, the more likely they are to face the risk of government intervention,” he warns.

Regardless of its status, Bitcoin could well be a serious alternative to gold in a few years. JPMorgan Chase believes that its adoption will potentially lead to significant changes in portfolios.

To date, however, there are no signs of such a shift. This is the analysis made by the investment bank Goldman Sachs. For the latter, Bitcoin’s rally in no way cannibalizes the gold price.

Moreover, according to its analysts, the two assets “can coexist”. However, some investments could move from gold to Bitcoin. This is due to “the recent underperformance of gold relative to real rates and the dollar. »

“While there is some substitution, we do not see the growing popularity of Bitcoin as an existential threat to the status of gold as a currency of last resort,” Goldman Sachs said.