Billionaire Investor Mark Cuban Says Bitcoin Is Not And Never Will Be A Hedge Against Inflation | Currency News | Financial and business news

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Mark Cuban on the set of “Shark Tank”.

ABC

Billionaire investor Mark Cuban has said that bitcoin is not and never will be a hedge against inflation. “Inflation hedge” is just a marketing slogan for gold and bitcoin, said the “Shark Tank” star. Cuban, whose Dallas Mavericks accept dogecoins, also said the coin itself is better than a lottery ticket.

Billionaire investor Mark Cuban believes bitcoin is not and never will be a hedge against inflation.

In a Twitter exchange on Tuesday, the owner of “Dallas Mavericks” shared his perspective when asked about his support for cryptocurrencies like dogecoin, which he said is “better than a lottery ticket. “, as opposed to bitcoin.

“Now do a 1 year performance comparison. I said Doge was good on the expense and better than a lottery ticket.”

“Do you still think btc is a hedge against inflation? It isn’t and never will be. Doge / btc has been stable for 30 days,” the ‘Shark Tank’ star said on Twitter.

An inflation hedge is an asset that helps protect against erosion of yields due to a sustained increase in price pressures.

Gold has traditionally been viewed as a hedge against inflation, while bitcoin has also started to be viewed as a hedge by some investors and academics.

Wharton School professor Jeremy Siegel said bitcoin stands out as a hedge against inflation. He compared it to gold, saying digital coins are the new bullion for millennials.

Cuban, however, doesn’t think gold or bitcoin is helping to mitigate the impact of rising price pressures on a portfolio, and he said calling them either a hedge against it. inflation is little more than a marketing gimmick.

“Because gold is not a hedge against inflation. It’s just a marketing slogan like with BTC,” he tweeted.

The end of the pandemic has led to a surge in global inflation, thanks to shortages of available labor and raw materials, exacerbated by a bottleneck in the supply chain. In the United States, the Federal Reserve is grappling with consumer inflation at its highest level since the early 1980s, while the economy remains vulnerable to surges in COVID-19.

Cuban himself has generally been bullish on crypto, especially Ethereum’s ether token. He said the ether has the most advantage in the crypto world as an investment, and it is the closest thing to “real money.”

As for bitcoin, he hailed it as a good store of value and a haven in the crypto world, but criticized it as being difficult to trade.

The billionaire’s tweets highlight earlier remarks where he said bitcoin – which like all cryptos is notoriously volatile – is “not a hedge against anything” and is “no cure for any system. financial ”.

Cuba’s crypto holdings consisted of 60% bitcoin, 30% ether, and 10% other altcoins, as disclosed in April 2021, according to CNBC.

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