- The billionaire TV personality and Dallas Mavericks owner weighed in on crypto.
- He is a big fan of DeFi in general and smart contracts in particular.
- However, he does not believe that crypto will be accepted as a currency.
In a podcast, billionaire entrepreneur, investor, Hi thank you star, and Dallas Mavericks owner Mark Cuban sat down with The Defiant to talk about why he’s bullish on crypto in general and especially, and why he is still skeptical as a currency.
During the hour, Cuban remained so Bitcoin is not a currency as much as it is a store of value: “To this day, I do not believe that Bitcoin will become a currency,”
Cuban: A modern nostradamus
Cuban made several predictions that revealed his optimism future. He said that governments around the world can make their own digital coins because it is cheaper: “We lose money on every penny and nickel that is minted. There’s just so much cost and stupidity associated with how we’re always done things. ”
He called fiat money “unsustainable and unsustainable” before adding that he was not sure “whether we will actually see everything collapse.” However, he predicted that when governments get more into digital currencies, he could see them sell a percentage of their gold reserves and put their income in BTC or ETH.
He admitted that in the end he does not know. “A lot of this is trust: What do you trust? Who do you trust? How do you trust that? Bitcoiners, rightly, rely on algorithmic scarcity. And that’s fine. But there is a lot of supporting trust that also comes in. You have to rely on electricity prices, availability, so that no one can get to 51%. For those who do not know: “51%” refers to the percentage of computing power needed on one blockchain network to hijack that network. At this point, it seems pretty difficult to make a takeover on that scale, but Cuban recommends caution anyway.
An analogy he returns to through the podcast compares the increase in blockchain with the Internet, in that there were initial, limited, early adoption programs before it all became ubiquitous. Cuban ser as the central 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 it? smart contracts?
Get smart with Ethereum
Cubans love decentralized economy (DeFi) goes hand in hand with his love for Ethereum, a blockchain created to support smart contracts. DeFi services have built an entire financial infrastructure on top of blockchain, using smart contracts (automated blockchain contracts) to create protocols that replace existing financial services in ways that, thanks to blockchain, are uniquely transparent and interoperable.
None of this really comes as a surprise if you’ve been following Cuban lately. He said recently DeFi was fairer to the users than the stock trading app Robinhood and, on a WallStreetBets AMA, he said DeFi can explode the next ten years.
There you have it. Mark Cuban is bullish on the blockchain.