Businessman Mark Cuban speaks after attending meetings at the White House, March 4, 2024, in Washington.
Television personality and investor Mark Cuban said Wednesday that Silicon Valley’s recent wave of support for former President Trump could be a “play” to boost bitcoin.
Cuban, the pro-crypto billionaire who has backed President Biden’s bid for reelection, argued that the potential inflationary impacts of lower taxes and higher tariffs under a second Trump presidency could drive up the price of bitcoin.
“Here is a contrary opinion on the emergence of Silicon Valley support for former President Trump. Which like all my opinions on here, probably won’t be popular,” Cuban wrote in a post on the social platform X. “It’s a bitcoin play.”
“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,” he added. “Combine that with global uncertainty as to the geopolitical role of the USA, and the impact on the US Dollar as a reserve currency, and you can’t align the stars any better for a BTC price acceleration.”
Trump has recently seen an upswing of support among wealthy tech leaders. Despite Silicon Valley’s liberal reputation, the former president has managed to peel off several former Democratic donors, who have joined a small, existing contingent of conservatives in the tech world.
Billionaire tech mogul Elon Musk on Saturday officially endorsed Trump, after the former president was injured during an assassination attempt at a campaign rally in Pennsylvania.
Musk plans to contribute about $45 million a month to a newly formed pro-Trump super PAC, called America PAC, according to The Wall Street Journal.
America PAC has also received donations from Palantir Technologies co-founder Joe Lonsdale, Sequoia Capital partners Doug Leone and Shaun Maguire, Valor Equity Partners CEO Antonio Gracias, and crypto investors Cameron and Tyler Winklevoss.
Trump’s announcement Monday that Sen. JD Vance (R-Ohio) would be his running mate has boosted his standing with Silicon Valley conservatives, who cheered the former venture capitalist’s addition to the GOP ticket.
The crypto industry has also increasingly moved into Trump’s camp amid frustration with the Biden administration’s approach to digital asset regulation.
While Cuban acknowledged Wednesday that Trump is a “far stronger proponent of crypto,” he argued that this “doesn’t really impact the price.” Rather, he pointed to the former president’s plans to cut income taxes and raise tariffs on foreign goods.
Economists and investors expect such policies could drive up inflation, which has eased significantly since peaking at a 40-year-high two years ago.
If there is further geopolitical uncertainty and the U.S. dollar loses its status as the world’s reserve currency, bitcoin could become a “safe haven,” Cuban said.
“BTC could be what countries and all of us look to buy as a means to protect our savings,” he said. “Crazy? It already happens in countries facing hyperinflation.”
“And if things really go further than we can imagine today (and I’m not saying they will. Just that this has a possibility somewhere above zero), then BTC becomes exactly what the [bitcoin maximalists] envision. A global currency,” Cuban added.
