ABC<\/p>\n<\/figcaption><\/figure>\n
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- Billionaire investor Mark Cuban said bitcoin is not, and will never be, a hedge against inflation.<\/li>\n
- “Inflation hedge” is just a marketing slogan for both gold and bitcoin, the “Shark Tank” star said.<\/li>\n
- Cuban, whose Dallas Mavericks accept dogecoin, also said the meme coin is better than a lottery ticket.<\/li>\n<\/ul>\n
<\/p>\n
Billionaire investor Mark Cuban believes bitcoin is not, and never will be, a hedge against inflation.\u00a0<\/p>\n
In a Twitter exchange Tuesday, the “Dallas Mavericks” owner shared his views when questioned about his support for cryptocurrencies like dogecoin, which he said is “better than a lottery ticket,” as opposed to bitcoin.<\/p>\n
“Now do a 1 year performance comparison. I said Doge was good for spending and better than a lottery ticket.”<\/p>\n
“You still think btc is an inflation hedge? It’s not and never will be. Doge\/btc is flat last 30 days,” the “Shark Tank” star said on Twitter.\n\t\t<\/p>\n
An inflation hedge<\/a> is an asset that helps protect against the erosion of returns from a sustained increase in price pressures.\u00a0\u00a0<\/p>\n
Gold has traditionally been considered an inflation hedge, while bitcoin has also started to be considered one by some investors and academics.\u00a0<\/p>\n
Wharton School professor Jeremy Siegel has said bitcoin stands out as an inflation hedge<\/a>. He compared it to gold, stating that digital coins are the new bullion for millennials.\u00a0<\/p>\n
Cuban, however, does not think that gold or bitcoin help mitigate the impact of rising price pressures on a portfolio, and he said calling either of them an inflation hedge is little more than a marketing gimmick.<\/p>\n
“Because gold is not an inflation hedge. That’s just a marketing slogan like it is for BTC,” he tweeted.\n\t\t<\/p>\n
The end of the pandemic has brought a surge in global inflation, thanks to shortages of available labor and raw materials, exacerbated by a supply-chain bottleneck. In the US, the Federal Reserve is grappling with consumer inflation running at its hottest since the early 1980s<\/a>, while the economy is still vulnerable to surges in cases of COVID-19.<\/p>\n
Cuban himself has generally been bullish on crypto, particularly ethereum’s ether token. He has said<\/a> ether has the most upside in the crypto world as an investment, and it is the closest thing “to a true currency.”Meanwhile, he has described meme coin dogecoin as “fun” and “educational”.\u00a0<\/p>\n
As for bitcoin, he has praised it as a good store for value and a safe haven in the crypto world, but criticized it as being difficult to trade.<\/p>\n
The billionaire’s tweets underline earlier remarks where he said<\/a> bitcoin \u2014 which, like all cryptos, is notoriously volatile \u2014 is “not a hedge to anything” and is “not a cure for any financial system.”<\/p>\n
Cuban’s crypto holdings consisted of 60% bitcoin, 30% ether, and 10% other altcoins, as <\/a>disclosed<\/a> as of April 2021, according to CNBC.<\/p>\n<\/p><\/div>\n