Silicon Valley technology giants support Trump, why?
As the 2024 U.S. election approaches, many of Silicon Valley's top technology companies have expressed support for Trump. Billionaire Mark Cuban recently speculated that these statements may mean that major technology companies are playing a "Bitcoin game."
Cuban believes that while Trump becoming a cryptocurrency supporter is a good thing, it does not really affect prices. The U.S. Securities and Exchange Commission (SEC) is facing necessary changes that will make it easier to run a cryptocurrency business.
However, if we look back at historical trends, the fundamental reason for Bitcoin’s rise is lower tax rates and increased tariffs, as this will lead to inflation.
💡Who is Cuban: He founded the Internet company Broadcast.com in 1998 and later sold it to Yahoo for a whopping $5.9 billion, making him a billionaire. Now he is the owner of the Dallas Mavericks basketball team in the American NBA, and his attitude towards Bitcoin has changed from criticism to support.
Source: Fox Business News
Billionaire Cuban talks Silicon Valley’s support for Trump, and the future of Bitcoin
Inflation, geopolitical instability are good for Bitcoin
Cuban also pointed out that uncertainty about the geopolitical role of the United States and Trump’s promise of future tax cuts may exacerbate inflationary pressures, and these factors will be the perfect catalyst for Bitcoin’s rise:
“Considering geopolitical instability and the decline of the U.S. dollar’s reserve currency status, Bitcoin has the potential to become a global safe haven and may become a means for countries and individuals to protect their savings in the future.”
Cuban said that in countries with serious inflation, the use of Bitcoin as a safe haven is already happening. If the situation worsens, Bitcoin may even become a "global currency."
Exacerbation of national inflation due to central bank printing has also occurred in the United States, but the U.S. dollar is still the cross-border trade settlement and main reserve currency. Former U.S. House Speaker Paul Ryan once discussed the role of U.S. dollar stablecoins in saving the U.S. dollar and maintaining global sovereign currencies.
Ryan noted at the time that stablecoins could maintain the dollar’s dominance in the face of high debt and competition from China’s yuan. Even though the U.S. dollar stablecoin is pegged to the real dollar, when the demand for stablecoins increases, it may help alleviate the U.S. debt crisis.
Source: CBS News
Former U.S. House Speaker Paul Ryan once discussed the role of U.S. dollar stablecoins
Cryptocurrency becomes a safe haven in countries with high inflation?
Compared with traditional fiat remittance services, cryptocurrency remittances have the advantages of low transaction costs and almost instant settlement. Some people in countries suffering from inflation have used it as a safe haven.
In Venezuela, more and more people are turning to cryptocurrencies due to international sanctions, government corruption, and runaway inflation. As of 2023, cryptocurrencies accounted for 9% of total remittances in Venezuela; Argentina is also plagued by inflation, with an annual inflation rate of 276%, resulting in a relatively high proportion of the country's population accepting cryptocurrencies.
Thaler, the founder of MicroStrategy who often touts Bitcoin, also believes that Bitcoin is a value storage tool that not only has the ability to resist inflation, but also has decentralized characteristics. Compared with traditional stocks and real estate, it is not easy to Affected by centralized institutions and national policies.
The founder of MicroStrategy reveals the "reason why you must buy Bitcoin": Bank interest is a scam! Why did he say that?
