Bitcoin is not the savior of inflation! Owner of NBA's Dallas Mavericks: It is similar to gold, but its value mainly comes from a religious-like belief.

Bitcoin hit a new all-time high yesterday, 12/17, reaching $23,776. With the community's FOMO sentiment running high, the Fear and Greed Index also reached a high of 95. In light of this, it might be interesting to hear the opinion of Dallas Mavericks owner and billionaire Mark Cuban, who criticizes Bitcoin in an objective and non-biased manner.

Belief and Consensus Make It Similar to Gold

According to Forbes' interview with Cuban on December 8, he believes his opinion has not changed, stating:

Bitcoin is a store of value, similar to gold, but what underpins it is more based on a religious-like belief and consensus rather than any practical solution.

Cuban added that one aspect where Bitcoin differs from gold is that due to Bitcoin's capped supply, it necessitates the characteristic of long-term holding (HODLing). When demand surpasses supply, the price rises, and vice versa.

Replacing Fiat Currency is Absurd

Cuban also believes that any argument about Bitcoin and cryptocurrencies replacing fiat currencies actually works against Bitcoin. He pointed out:

No matter how many Bitcoin enthusiasts convince themselves that holding it will hedge against a doomsday scenario of a financial system collapse, reality will not be so. Countries will take action to protect their currencies and tax capabilities. Therefore, as more and more people believe Bitcoin is not just a store of value tool, the risk of government intervention increases.

Using China's digital currency DCEP as an example, Cuban believes that every country has the ability and is actively developing central bank digital currencies. He summarized with his previously proposed "Banana Theory" :

Bitcoin is Bitcoin, and as long as enough people in the world accept it, it is an investable asset. However, compared to bananas, which have more utility as potassium is an important source of nutrition for everyone on Earth, bananas are one of the fruits rich in potassium. But as long as the public accepts Bitcoin as the digital version of gold, then it can be invested in.

However, Cuban's regulatory argument is not the first, as previously Bridgewater Associates founder Ray Dalio also had similar arguments. He believes that even as the importance of Bitcoin grows, governments will not stand idly by and will use all means to prohibit this asset.

Regarding Dalio's hunting claims, the community is quite disapproving, presenting many arguments in rebuttal. Dalio himself later stated that he may have misjudged Bitcoin in some respects and is very willing to correct any errors.

In addition, Cuban's current argument seems to contradict his previous statements. According to reports in April this year, he pointed out that in the event of a collapse in the traditional financial system, it might be "Bitcoin's turn to shine," and he believed that if the economic system remains stable, Bitcoin may ultimately gain nothing.