With high inflation and economic uncertainty all around, you might be wondering where to invest your money. According to the US inflation calculator, the annual inflation rate for the 12 months ending in August 2025 was 2.9%. But the purchasing power of the dollar has declined significantly over time. From 2020 to 2025 alone, the cumulative inflation rate was 25.2%. This means that something that cost $100 five years ago will now cost $125.20.
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For billionaire Mark Cuban, one such hedge against rising prices is crypto treasuries. Here’s why, and whether you might want to consider buying into crypto yourself.
Mark Cuban’s stance on crypto treasuries
In an interview with TheStreet Roundtable, Cuban shared his thoughts on crypto treasuries like Ethereum, Solana, and Bitcoin. Of note, he said he was “okay with it” as an “alternative asset that could be a hedge” against inflation.
Cuba itself owns Bitcoin. He has also invested in nearly two dozen blockchain companies under the Mark Cuban Companies umbrella. Their stance on decentralized finance (DeFi) is that it provides a way for individual consumers to manage their finances independently of financial institutions: namely banks.
As for why he sees crypto treasuries as a hedge against inflation, the reason is simple. Alternatives like Bitcoin can protect one’s purchasing power from the erosion caused by inflation. As a new, alternative investment, crypto can be more volatile than gold. But it has long-term potential to help investors balance portfolios and reduce risk.
To make this more clear, Bitcoin was up 1,041.17% on October 1, 2025. In comparison, gold was up 170.73%, while the S&P 500 was up 125.60%. Updated data is available on Bitcoin Counter Flow.
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Should everyday Americans also invest?
The answer is not as straightforward as you might expect.
Charlie Brady, vice president of investor relations at Bitfufu, said, “There is merit in using Bitcoin treasury as a hedge against inflation. With its fixed supply and growing institutional adoption, Bitcoin is increasingly adopting ‘digital gold’ characteristics.”
Brady further said that a growing number of companies have “adopted treasury strategies that involve holding Bitcoin, underscoring its role as a scarce digital asset with long-term value storage potential. Companies and individuals should recognize the risks as Bitcoin remains volatile,” he added.
Many cryptocurrencies are still highly speculative. According to Brady, Bitcoin could be a useful addition to a diversified portfolio. This does not necessarily apply to other cryptos.
“For everyday US investors, Bitcoin stands out as the only crypto asset with the scale and fundamentals to act as an alternative store of value – as long as allocations are disciplined and platforms are transparent and compliant,” he said.
Education is essential for crypto investing
It’s also worth noting that there are two main types of crypto treasuries.
According to Charles Urquhart, CFA and founder of Fixed Income Resources, these are “companies that hold Bitcoin in their coffers as a hedge against fiat money devaluation, and tokenized treasuries, which are basically US Treasury bills or ETFs that are denominated on the blockchain for quick settlement and broader access.”
The first type – well-known companies that hold Bitcoin as a hedge against inflation – do so with the expectation that the dollar will decline. However, Urquhart does not see it as a “reliable inflation hedge for regular investors” due to the cryptocurrency’s volatility and bearishness.
There is an option for the cautious investor too
However, tokenized treasuries may be worth considering.
“They are essentially repackaged regular US Treasuries and come with a different wrapper. For most households, a combination of I-Bonds, Tips [Treasury Inflation-Protected Securities]“Short-term highly rated bonds and appropriately sized equity investments are more practical and less volatile,” Urquhart said. Crypto treasuries can play a small supporting role but should not replace the main way to fight inflation.
Ultimately, investors should consider their options carefully when deciding whether to invest. Risk, return and time horizon all play major roles in what should and should not be added to one’s investment portfolio. When dealing with alternative investments, it may be advisable to consult a certified financial professional about your options.
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This article originally appeared on GOBankingRates.com: Mark Cuban endorses this surprising investment amid high inflation – should you invest?
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