Silicon Valley is in love with Trump because of Bitcoin, says Mark Cuban

Why are Silicon Valley venture capitalists suddenly backing Donald Trump? Billionaire Mark Cuban – one of the politician's staunchest critics – says: “Bitcoin is a game”.

The trader's analysis follows several endorsements of Trump from wealthy crypto leaders who openly support him as he promises to protect their industry.

Silicon Valley, Trump and Bitcoin

According to Cuban, a Trump presidency will have a direct positive effect on the value of Bitcoin – an asset that has gained popularity among tech investors over the past several years.

“It's not because the former president is a very strong supporter of crypto,” Cuban said. According to the investor, Trump's crypto agenda – accepting Bitcoin miners and guaranteeing the right of self-determination of citizens – will make it easier to “do crypto business” instead of “influencing the price of crypto”.

Instead, Cuba says Trump's popular policies of low tax rates and tariffs will boost BTC, as such policies are historically inflationary.

“Couple this with global uncertainty, the geopolitical role of the U.S. and its influence on the U.S. dollar as a reserve currency, and you couldn't align the stars better for BTC's price acceleration,” Cuban said.

When talking about how high Bitcoin can go, he said the limit is “more than you think” given the asset's global nature, limited supply and unlimited fraction. As the dominance of the US dollar continues to erode, BTC believes it could be the next “safe haven” countries seek to protect their savings.

“This has a more than zero chance, then BTC will become exactly what Maxis envisioned – a global currency,” he concluded.

Billionaires who support Trump

Over the weekend, Trump received support and funding from the likes of Elon Musk, whose car company Tesla owns bitcoin on its balance sheet. In early June, Social Capital CEO Chamath Palihapitiya predicted that Bitcoin could reach $500,000 by 2025 — and he spoke highly of Trump in a podcast later that month.

Even JPMorgan CEO Jamie Dimon, who has been floated as a potential new Treasury secretary under Trump, is reportedly starting to see the bright side of Bitcoin.

“Jamie Dimon, you know, he's been very negative and now all of a sudden he's changed his tune a little bit,” Trump said in an interview with Bloomberg published in June. This followed the president's private audience with Dimon and 80 other business executives at the time.

“If we don't do it, China will take it and China will take it over,” Trump said of the crypto industry. “I don't want to be responsible for letting another country control this sphere.”