The Bitcoin rally has left many detractors of the leading cryptocurrency entirely speechless. However, some remain committed in their distaste for the asset. Amongst the most outspoken detractors is Dallas Mavericks, the billionaire investor and owner of the Dallas Mavericks.
More of Religion Than an Investment
Cuban has long been a crypto critic. In a recent interview with Forbes, he doubled down on his criticism of the asset, explaining that its value was entirely based on people’s desire to pay for it. The billionaire investor explained that while many crypto proponents believe the asset can serve as a hedge against inflation, it just can’t.
Along with the asset’s perceived lack of stability, Cuban also explained that there is no way for cryptocurrencies to replace traditional fiat assets. In part, he said:
“Bitcoin is a store of value like gold that is more religion than solution to any problem. Countries will take steps to protect their currencies and their ability to tax, so the more people believe this is anything more than a store of value, the more risk of government intervention they face.”
As explained earlier, Cuban has long been a Bitcoin critic. In September 2019, he bashed the leading cryptocurrency on a WIRED broadcast, comparing it to a collectible. At the time, the billionaire explained that Bitcoin was like a baseball card or a comic book. People only pay for it because they believe that it would increase in value over time.
Going deeper, Cuban explained that Bitcoin was worth even less than baseball cards and comic books, since investors can’t actually see the asset. He added that the difficulty in understanding Bitcoin was also a major problem, since “99 percent of investors” don’t really know what to do with it. Concluding, he said that he’d rather have bananas – at least, he could eat those.
Cuban reiterated the same sentiment earlier this year on an episode of the Pomp Podcast. Speaking to crypto evangelist Anthony Pompliano, the investor explained that he would only change his skepticism about Bitcoin when it becomes so easy that anyone’s grandma could use it.
Cuban’s Chest is Still Out
While Cuban’s sentiments – especially relating to Bitcoin’s intrinsic value – appear to be faulty, his defiance in the face of market conditions is impressive. Peter Schiff, the gold bug and most notable Bitcoin critic, has been silent on his Bitcoin criticism since the asset crossed the $20,000 mark firmly.
Instead, Schiff’s Twitter feed has primarily focused on criticizing the United States Federal Reserve over inflation numbers and what he considers to be terrible macroeconomic policies.
He took a detour to bash Grayscale Investments for allegedly ripping its investors off and CNBC for “selling out for ad dollars,” but he has notably not said anything about Bitcoin. Schiff appears to be waiting out this storm, with Bitcoin gaining on gold significantly.