When Donald Trump first ran for president in 2016, many in Silicon Valley opposed his candidacy. As 2024 approaches, the same elites are now publicly backing him—but why? According to Mark Cuban, the reason is cryptocurrency.
“It’s a bitcoin play,” stated the Dallas Mavericks minority owner and “Shark Tank” star on X (formerly known as Twitter) on Wednesday. He added that a Trump administration likely “makes it easier to operate a crypto business because of the inevitable, and required, changes” at the Securities and Exchange Commission.
Although he was once a critic, Trump has recently become a supporter of Bitcoin, positioning himself as the pro-crypto candidate. The former president accepts donations in some cryptocurrencies, sells his own NFTs (non-fungible tokens), and is set to speak at the Bitcoin Conference in Nashville later this month.
Public support for Trump in the tech world has surged recently. His running mate, Ohio Senator J.D. Vance, has venture capitalist experience and connections to Palantir’s Peter Thiel. Several prominent tech leaders with ties to crypto, including Elon Musk, the Winklevoss twins, and Andreessen Horowitz’s Marc Andreessen and Ben Horowitz, have endorsed or financially supported Trump through political action committees.
Republicans have long attracted Silicon Valley leaders with promises of lower corporate taxes. While many tech workers lean liberal, their employers often fund candidates from both major U.S. political parties.
Cuban notes that although Trump’s interest in crypto is “nice,” it doesn’t affect crypto prices significantly. “What will drive the price of [Bitcoin] is lower tax rates and tariffs, which if history is any guide (and it’s not always), will be inflationary,” Cuban wrote.
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.”
On the campaign trail, Trump has promised to withdraw from the Paris Climate Accords, expressed concerns over U.S. aid to Ukraine, and suggested higher taxes on imports from all countries, according to NPR. He has also proposed lowering corporate tax rates to as low as 15% and maintaining provisions of his 2017 tax cuts. Recently, Trump stated that Taiwan “should pay us for defense” against China, likening the U.S. to an insurance company.
Cuban predicts that if the U.S. dollar declines due to geopolitical uncertainty, Bitcoin could become a “safe haven,” where other countries would look to the U.S. to protect their savings.
“And if things really go further than we can imagine today (and I’m not saying they will, just that this is a possibility somewhere above zero), then BTC becomes exactly what the Maxis envision,” Cuban wrote, referencing the staunchest Bitcoin supporters. “A global currency.”