Saturday, August 10th 2019, 11:05 am
For a while now, a debate has been raging between Bitcoin (BTC) bulls and gold investors. The former group argues that the cryptocurrency is a proper alternative to the precious metal; the latter actively rebut this sentiment, claiming that BTC has no inherent value, unlike gold.
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However, Bitcoin’s proponents recently snagged a win, with a prominent billionaire and television star admitting that BTC is, in his eyes, a proper gold alternative.
Bitcoin, the Same as Gold?
Speaking to Kitco, Mark Cuban, a panelist of “Shark Tank” (which also hosts prominent Bitcoin critic Kevin O’Leary), explained that he sees very clear similarities between Bitcoin and gold, the latter of which he finds to have little inherent value.
The billionaire explained that if you were to boil the two assets down, they are essentially the same thing, adding that they both can be defined as collectibles. In other words, Cuban explained that Bitcoin and gold both derive their value from simple supply-demand economics.
Related Reading: Bitcoin Price to See Fresh All-Time Highs Amid “Market Mayhem”, Fundstrat Asserts
Funnily enough, he went on to laud Bitcoin in his own way. Referring to the cryptocurrency’s 21 million coin supply cap, Cuban explained that BTC has a “finite supply” much unlike gold, which he claimed would continue to be mined into infinity.
This is actually an argument that many of cryptocurrency’s foremost supporters bring up in their arguments against gold bugs and traditional economists, like Peter Schiff.
“#Gold and #bitcoin are the same things,” says @mcuban, owner of the @dallasmavs. “They are both collectibles. I hate gold. Gold is a religion” | THROWBACK WEEK | @KitcoNewsNOW @DanielaCambone | #kitconews #crypto #markets #investing #cryptotrading | https://t.co/hOU7Avzd2y
— Kitco NEWS (@KitcoNewsNOW) August 9, 2019
Despite his surprise admission, which would normally be music to the ears of crypto investors, Cuban made it clear he isn’t bullish on Bitcoin, or gold for that matter.
He told the gold-centric business news outlet that he hates gold — and thus Bitcoin — and does not see the precious metal as an alternative to fiat currencies. Of course, the gold standard would beg to differ. Regardless, the billionaire made it abundantly clear that he isn’t a fan of gold or Bitcoin — and that’s that.
A Critic of Libra
While Cuban has a penchant for innovation, he doesn’t like Libra. Speaking to CNBC and a number of outlets on a number of occasions, the Dallas Mavericks owner has explained that he believes that the Facebook-backed crypto asset is a “big mistake”.
He opined that in nations where there isn’t a lot of “rule of law, government stability, or currency stability”, Libra, and maybe Bitcoin too, could become “dangerous” should it see adequate amounts of adoption.
Indeed, should Libra be adopted in a country with governmental problems, for instance, there may be unintended consequences. Whether those consequences are good or bad are debatable though. Cuban expounded:
“There’s going to be some despot in some African country that gets really upset that they can’t control their currency anymore and that’s where the real problems start occurring.”