Billionaire investor Mark Cuban thinks bear markets could potentially have a positive impact on the crypto space.
Cuban argues application is what matters for crypto, not hype, and that the relatively young blockchain space is encountering the same problems as the first-generation internet.
“I’m old enough to remember when ‘sophisticated’ investors invested in internet sites based on ‘hits.’ A ‘hit’ is the display of any file. So sites loaded up tiny, invisible files and bragged about how many hits they got. People dismissed the net just like they are crypto.”
Cuban says crypto projects should solve a problem, improve productivity and profitability, and/or create new consumer opportunities.
“Crypto isn’t monolithic. DeFi [decentralized finance], ReFi [reimagined finance], smart contracts, [and] decentralization create new business and consumer applications. The challenge is that we are in the gold rush stage where everyone is selling technology and/or hype over applications. Bear markets clean that up.”
Cuban says blockchain technology will undergo the same evolution as the early computer networking technologies.
My 1st company did LAN/WAN custom software and integrations. Back then we argued about Token Ring, ARCNet, Ethernet and others, and the OpSystems from Novell, Banyan, Microsoft and others. You prob don't know any of this. The same will happen with Blockchain. https://t.co/BOza7NiQg5
— Mark Cuban (@mcuban) May 31, 2022
The famous investor also argues that decentralized storage could make storing files cheaper and less vulnerable to hacks in the future, even though it’s still a more expensive option today.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxToday. Yes. But you have to keep on adding all those check list features to compete. And cyber security is no win for you. Let’s see how decentralized storage competes on basic features, cost and security over the next 5 years
— Mark Cuban (@mcuban) May 31, 2022
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