Briefly
- The billionaire TV personality and Dallas Mavericks owner weighed crypto.
- He’s a big fan of DeFi in general and smart contracts in particular.
- However, he does not believe that crypto will be accepted as currencies.
In a podcast, billionaire entrepreneur, investor, Shark Tank star, and Dallas Mavericks owner Mark Cuban sat down with The Defiant to talk about why he’s clumsy crypto in general and DeFi in particular, and why he is still skeptical Bitcoin as currency.
In the course of the hour, Cubans certainly remained so Bitcoin is not a currency, but it is a value proposition: “To this day, I do not believe that Bitcoin will become a currency,” he declared. “What really changed was that people started to realize that it’s just a valuable store.”
Cuban: a modern nostradamus
Cuban has made several predictions that reveal his optimism about blockchain’s future. He said governments around the world might create their own digital coins because it’s cheaper: ‘We’re losing money on every penny and nickel struck. There is just so much cost and stupidity to the way we have always done things. ”
He then calls fiat money “unsustainable and unsustainable” before adding that he is not sure “whether we will really see everything collapse.” However, he predicted that as governments end up more in digital currencies, he could see them selling a percentage of their gold reserves and putting their earnings into BTC or ETH.
He admitted that he finally did not know. ‘A lot of this is trust: what do you trust? Who do you trust? How do you trust it? Bitcoiners trust with right algorithmic scarcity. And that’s good. But there is also a lot of confidence that backs it up. You have to trust electricity rates, availability, that no one can reach 51%. For those who do not know: “51%” refers to the amount of computing power required on a blockchain network to hijack that network. At this point, it seems rather difficult to make a takeover on the scale, but Cubans are cautious anyway.
One analogy to which he returns throughout the podcast compares the rise of blockchain with that of the Internet, because there were initial, limited early adoption applications before the whole thing became ubiquitous. Cuban see smart contracts as the crucial moment when crypto “just blew up” and a major threat to the banking system. For that reason, he said, “Ethereum has an advantage over Bitcoin for ordinary people.”
But what is smart contracts?
Get smart with Ethereum
Cuban love for decentralized finance (DeFi) goes hand in hand with his love for Ethereum, a blockchain created to support smart contracts. DeFi Services has built an entire financial infrastructure on top of the blockchain by using smart contracts (automated blockchain contracts) to create protocols that replace existing financial services in ways that, regardless of the blockchain, are unprecedentedly transparent and interoperable.
Cuban said: “Smart contracts are genuine and remind me of the early days of the internet. With just HTML and basic JavaScript, you can do a lot of business. It becomes frictionless banking. It is easier to borrow within seconds. If you have $ 200 in Ether or Bitcoin and you want to pack it, and then borrow $ 100 at 2.3%, it takes you fifteen seconds. It’s amazing. It’s really starting to disrupt the banking industry. ”
None of this is really a surprise if you’ve been following Cuban lately. He recently said DeFi was more honest for users as the app exchange Robinhood and on a WallStreetBets AMA, he said DeFi could explode in the next ten years.
There you have it. Mark Cuban is strong on blockchain.