Mark Cuban, the popular American entrepreneur and a major Bitcoin critic, has lauded the top crypto’s monetary policy, urging public companies to learn from Bitcoin and limit their share inflation.
Mark Cuban, the billionaire owner of the Dallas Mavericks, made this statement via his official Twitter account, noting that public companies should learn from Bitcoin by committing to not issue new shares of stock.
Public companies should learn a lesson from BItcoin and commit to not issue new shares of stock. Ever. Their stock prices would immediately jump.
— Mark Cuban (@mcuban) December 27, 2020
According to the tweet, if these public companies stop issuing new shares of stocks, copying Bitcoin’s scarcity-based economic model, their stock prices would immediately increase.
Distinctly, his tweet has led some to wonder if Mark Cuban, who is commonly known as a crypto critic, is warming up towards digital currency.
It should be recalled that the billionaire had previously said in a recent interview with Forbes that he believes a banana has more utility than Bitcoin.
“BTC is what it is, something that enough people have agreed upon is an investable asset. A banana has more utility, potassium is a valuable nutrient to every person on the planet :), but as long as people accept BTC as a digital version of gold, its investable,” he said.
Notably, in an interview with CNBC, he previously disclosed that he believes Facebook’s Libra was a big mistake. “I’m not a big fan of what they’re doing there. […] I think it’s a big mistake,” he said.
While many had stated that cryptocurrency could be a hedge against high inflation risk, Mark Cuban had always reiterated his opinion that crypto isn’t a hedge against “doomsday scenarios.”
Is Mark Cuban Embracing Crypto?
Mark Cuban told Forbes last year that he isn’t against crypto. Instead, he says he views the tech as no more than stored value. He said, “I say it’s like gold. Gold is a religion: people who are really into gold—they’ll tell you that there’s a bad depression and things go to hell in a handbasket, if you own gold then you’ll be okay. No, you won’t!”
He added that he likes the underlying blockchain technology of crypto, but he feels the inherent complexity of using crypto in everyday life is hampering adoption. He stated, “Crypto is so complicated for 99% of the population. Do you put in in a device, do you print it out, how do you keep from being hacked, who’s going to host it for you?”
Cuban, in his recent Forbes interview, maintains his distrust of crypto. He said, “My thoughts haven’t changed. It’s a store of value like gold that is more religion than solution to any problem.”
Still, that doesn’t stop him from tweaking the social media noses of crypto enthusiasts or trying to get them to spend their crypto with him. He recently took to Twitter to urge Mavs fans to buy gear with Bitcoin and, in return, get a 25% discount on goods purchased. “Want to spend your $BTC somewhere… Spend it with the Mavs and get a 25 percent discount for using Bitcoin!,” he tweeted.
— Mark Cuban (@mcuban) December 23, 2020
Cuban mentioned Bitcoin in the earlier part of December when Elon Musk, the CEO of Tesla, likened the top crypto to fiat currency. Cuban replied to Musk, saying Musk’s statement was a “blasphemous” one. While one could wonder if he was defending Bitcoin, it is far more likely that Cuban was championing fiat currency being compared to crypto.
Blasphemous I say, just Blasphemous ! https://t.co/Jk47KqY2x6
— Mark Cuban (@mcuban) December 21, 2020
Bitcoin price has surged recently, hitting a new all-time high of $29,285.61 a few hours ago. A number of institutional investors have moved into the crypto space, such as Massachusetts Mutual Life Insurance Co., who invested a cool $100 million in BTC.
At the time of publication, Bitcoin was trading at $28,982.10, with a market cap of $538,842,592,681 and a 24-hour trading volume of $42,216,258,086.
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Featured image courtesy of Wikimedia Commons/Gage Skidmore.