Billionaire investor and Shark Tank veteran Mark Cuban says the crypto sector is going to fundamentally transform the way businesses function.
In a new interview, Cuban tells Jason Calacanis of the Angel Podcast that blockchain technology and decentralized finance (DeFi) are on the verge of revolutionizing many industries.
The entrepreneurial titan explains that as the nascent DeFi sector grows and becomes more user-friendly, businesses and individuals will realize that they can gain access to what is essentially a streamlined financial system absent of the hassle embedded in traditional banking.
“Banking… if you have $10,000 in the bank and you need to borrow $2,500 to go on vacation knowing you’re going to get a bonus at the end of the year. Maybe you could put it on your credit card you’re going to pay your 19%… and if you wanted to get an actual loan from your bank, it’s a hassle. For me to get a loan from the bank is a hassle… no matter how much assets I have.
Well, you go onto Compound, I use Aave, and you just put the money there and if I want to borrow $2,500 bucks it takes me less than 15 seconds… The point is that the amount of friction involved to do it versus dealing with banks and we’re six months into this whole thing in terms of being consumer-friendly… This shit is crazy. It’s going to change how all businesses work.”
Cuban says that as smart contract platforms became more reliable and user-friendly, the crypto space hit a pivotal point and the idea of decentralizing finance in other areas began to seem possible.
“To me, once people got a feel for the blockchain particularly on Ethereum and the smart contracts started to become open source and understandable and the apps started getting written so that they could be used by consumers, that took a step forward.
At that point, people realized Bitcoin’s not a currency. It’s a store of value, Ethereum’s not really a currency even though you can buy things on the blockchain, but with smart contracts you can decentralize authority and it’s trusted by everybody.”
Cuban goes on to outline his prediction that as DeFi rises in popularity so will non-fungible tokens (NFTs), describing a future in which nearly every physical asset that can be digitized will be.
“Then this past summer you really started to see decentralized finance (DeFi) take off and that just changed the whole game and that got people involved in putting money in wallets, figuring out wallets you know yield farming and then from there it was like collectibles. Now I have my wallet, I have money in my wallet I can go to Rarible.com, I can go to OpenSea… I can go wherever and all these things that I’m into I can collect… Effectively, you’re able to monetize anything that’s digital. Period, end of story.”
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