Billionaire investor Mark Cuban has urged traders preparing for economic turmoil to choose Bitcoin instead of gold. In his statement, Cuban mentioned that Bitcoin looks like a modern way to store value during a crisis, relegating Gold to a relic in a museum.
Cuban stated that Bitcoin is better than gold in all aspects, noting that it is more valuable, practical, portable, and a better store of value. He noted that people now see gold as outdated because Bitcoin has flipped the precious metal and taken its place. “People look at Bitcoin as a better version of gold,” Cuban said.
Mark Cuban lists Bitcoin’s merits
According to Cuban, gold might provide a better financial incentive during a crisis, but the asset is very inconvenient. He noted that the bars are heavy, and hard to divide, which makes them easier to steal. “People aren’t going to walk around with gold bars,” he joked. “Oh, look, he owns gold. Bam! Now I own gold.”
He highlighted that Bitcoin will not face the same issue as gold seeing that it is lightweight, easy to move, and easy to divide into smaller bits. He also explained other aspects that put Bitcoin ahead. “It’s easier to buy and sell. You can fractionalize it, you can buy things, you can transfer it internationally. And so I think it has more value than gold,” he added.
Cuban highlighted that Bitcoin does not just act as a store of value, it is also a currency that can be used anywhere globally. However, investors holding gold use the metal as a hedge. Mark Cuban noted that he is not convinced about their claims, noting that its record is not exactly spotless. While gold could be used as a haven even against the dollar crash, Cuban isn’t convinced about its physical aspect.
Economic projection and Bitcoin’s role
The United States economy is barely hanging on, but things are not dire. However, the current projections show slowed growth for this year, with a 2.0% increase in GDP currently being predicted. Goldman Sachs is still being optimistic, predicting a 2.5% rise, thanks to consumer spending and the strong job market.
Unemployment has also been predicted to hit around 4.2%, with about 150,000 job growths predicted for every month. These numbers show strong stability, however, there are always threats of inflation and volatility. Goldman Sachs sees core PCE inflation at 2.1% by the end of the year, but the Federal Reserve isn’t looking to cut rates anytime this year.