As we all know by now, it doesn’t matter how well bitcoin does. The world’s number one digital currency by market cap is always likely to have its doubters, one of which appears to be billionaire investor Mark Cuban.
Mark Cuban Is Still Rejecting BTC
In the past, Cuban has commented that he would rather have “bananas” than bitcoin. However, one would think he would change his tune as of late considering the currency has reached a new all-time high of roughly $22,700 at the time of writing. Bitcoin is surging like it never has before, but that isn’t enough for Cuban to be convinced of the currency’s strength and prowess.
In a recent interview, he comments that bitcoin “is more religion than solution to any problem,” and that in the end, it isn’t likely to solve any of the financial problems many analysts claim it will. He says:
My thoughts haven’t changed… No matter how much [bitcoin] fans want to pretend that it’s a hedge against doomsday scenarios, it is not. Countries will take steps to protect their currencies and their abilities to tax, so the more people believe this is anything more than a store of value, the more risk of government intervention they face.
To an extent, one must acknowledge Cuban’s words and understand where he’s coming from. For one thing, bitcoin – like all cryptocurrencies – was initially designed to be a payment currency. An asset that someone can use to potentially pay for various goods and services. However, this route has been hard to lay out considering the asset’s volatility has placed several burdens on retailers and monetary systems.
Say, for example, you walk into a store and pay for $50 worth of products with bitcoin. Tomorrow, the price of bitcoin goes down, turning that $50 into $30. The company lost $20, while you still get to walk away with everything you bought. It’s not entirely fair for the enterprise in question, and as a result, bitcoin and its altcoin cousins have repeatedly been rejected as payment tools.
Until the day comes when bitcoin can be used like fiat currencies, it’s unlikely that bitcoin will replace them altogether. At the time of writing, the U.S. dollar and other forms of fiat appear to be experiencing inflation thanks to the coronavirus pandemic, but the fact is that they’re still in commission, and it’s not likely that countries will turn their backs completely on their national currencies without a fight.
Some Positive Traits, But Not Much Else
As it stands, Cuban isn’t a giant doubter when it comes to bitcoin. He says that it does share similarities with gold, and this is what makes it investable. However, he says that anyone who believes bitcoin is or ever could be a hedge tool is likely fooling themselves. He states:
It would have to be completely friction-free and understandable by everybody first.