"Bitcoin Up 30%, Gold Down 14%"...Adam Back Slams Mark Cuban's 'Failed Hedge' Claim

▲ Bitcoin (BTC) and Gold

The debate surrounding Bitcoin (BTC) as a safe-haven asset has reignited. Blockstream CEO Adam Back countered Mark Cuban's criticism that Bitcoin failed as a hedge against inflation and geopolitical risks, stating that Cuban's claim does not align with recent market figures.

BeInCrypto reported on May 23 (local time) that Back publicly disagreed with Cuban's assertion that Bitcoin "lost its way" after Cuban sold most of his Bitcoin holdings. Cuban pointed out that Bitcoin declined while gold prices surged, suggesting that Bitcoin failed to play its expected role during periods of dollar weakness and geopolitical risk.

Back revealed that Bitcoin has risen by 25-30% from a low of approximately $60,000 since tensions escalated in the Middle East. During the same period, the S&P 500 rose by 11%, the Dow Jones Industrial Average by 5%, and gold fell by 14%. Back said, "Bitcoin is up 25-30% from a low of about $60,000. The S&P 500 is up 11%, the Dow Jones Industrial Average is up 5%, and gold is down 14%. So, I don't know what Mark Cuban is trying to say. Unless he sold at the bottom, it doesn't align with the data."

Cuban's grievances focused on an earlier period when Bitcoin dropped over 40% while gold rose to $5,000. He argued that Bitcoin should have risen whenever the dollar weakened, but it did not actually do so. Cuban's criticism of Bitcoin's investment thesis is not new, and he also expressed a more optimistic stance on Ethereum (ETH) in the future.

Back explained the previous decline as a so-called "10/10 event" and halving cycle periodicity. He viewed these factors as separate from gold's geopolitical rise. In the Bitcoin safe-haven debate, Back's rebuttal focused on differences in investment periods rather than price movements at a single point in time.

Back stated, "To achieve an exceptional Sharpe ratio in the long term, volatility is unavoidable. That volatility naturally comes with it." BeInCrypto reported that whether Cuban mistimed his sale or truly captured a shift in Bitcoin's role can only be confirmed after the next market cycle.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*