Entrepreneur Mark Cuban is a fan of decentralized finance (DeFi) because it gives many advantages over traditional financial infrastructure. He even prioritizes Ethereum, the second-largest cryptocurrency, over Bitcoin, the world’s leading digital asset, because Ethereum settles more practical issues.
Bitcoin is a Store of Value Asset
Cuban, the owner of Dallas Mavericks, discussed the future of crypto, especially DeFi, during his talk with the Defiant. On Bitcoin, the famed billionaire has doubts about its status as currency. According to him, Bitcoin meets the standards of a store of value- rather than currency.
However, Cuban has much respect for DeFi as it can transform the financial structure of the world.
The Shark Tank star came up with many predictions for blockchain technology. The central banks of countries across the world will ultimately roll out their national digital currencies. On the creation of physical money, governments lose much of the money, which will be saved if the digital currency becomes the new normal.
If the governments start creating their digital currencies, the investors will make hefty investments in Bitcoin after dumping gold reserves. People, who play with cryptocurrency, believe in the scarcity of Bitcoin and its underlying algorithmic technology.
Cuban also compared blockchain technology with the internet as adoption is slow in the start, and then the whole thing will rise. Smart contracts in the form of DeFi have challenged the current banking system, and Ethereum has benefits over Bitcoin, according to Dallas Mavericks.
Liking for Ethereum
It was revealed during the whole interview that the billionaire has a strong liking for Ethereum, the largest altcoin by market capitalization. The banking operations will get updated with the incorporation of DeFi (smart contracts). The process of borrowing becomes very fast as it takes seconds to proceed.
Recently, he said people should prefer DeFi over Robinhood, the famous stock trading platform. According to him, the decentralized sector will outperform in the next coming days.
Bitcoin is currently trading at $48,867 after increasing by 4.19%. The flagship cryptocurrency has outperformed the majority of the coins in the crypto market over the week as it is up more than 28% in the previous seven days.
The total market capitalization of the cryptocurrency market is standing at $1.5 trillion.
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