Billionaire Mark Cuban Explains Why He Invests in Crypto
Seasoned entrepreneur and prominent investor Mark Cuban is excited by the opportunities smart contracts unlock for end-user applications while still being in a nascent phase of progress.
Billionaire Mark Cuban: "Smart contracts will have a significant impact"
Dallas Mavericks owner Mark Cuban took to Twitter to explain in a few words why he decided to invest in cryptocurrency products. Accoring to him, the disruptive potential of the smart contracts technology was the most impressive catalyst for him.
A basic question. Why have I invested in crypto? Because I believe Smart Contracts will have a significant impact in creating valuable applications. I have said from day 1, the value of a token is derived from the applications that run on its platform and the utility they create— Mark Cuban (@mcuban) November 13, 2022
He highlights that smart contracts can be a technical basis for valuable applications addressing various use cases. The value of this or that token is determined by the value created by applications run on its blockchains, Mr. Cuban says.
Meanwhile, not all dApps will reach their audience. Only valuable and useful applications will attract new clients to go through the "learning curves":
What has not been created is an application that is ubiquitous. One that is obviously needed by everyone and they are willing to go through the learning curve to use. Maybe it never comes. I hope and think it will.
For him, the modern cryptocurrency segment with all of its bottlenecks looks like streaming in the early days of the 1990s Internet. To launch or watch video streams, users needed to set up a "dial-up" modem and install clients for TCP/IP, Internet providers and streaming itself, and so on.
Ethereum (ETH) bull, Cardano (ADA) critic, "rug pull" survivor
In the mid-1990s, this looked way more complicated than just watching the news on TV or listening to radio programs. However, streaming technology evolved into a key element of the global communications segment.
That is why he is sure that smart contracts tech is still in its infancy: Mr. Cuban recalls that it is only "five years old." It should be noted that, actually, the first programmable blockchain with smart contracts (Ethereum) was unveiled in 2015.
As covered by U.Today previously, Mark Cuban is well known as an adamant critic of Cardano (ADA) and a seasoned advocate of Ethereum (ETH). He welcomed Ethereum Merge activation and claimed that it is a massive catalyst for the second cryptocurrency.
In mid-June 2021, his DeFi project, Iron Finance (TITAN), was rug pulled: Mr. Cuban was a liquidity provider for TITAN on Quickswap exchange.Source