Billionaire celebrity investor Mark Cuban thinks blockchain technology is a better option for traditional finance (TradFi) activities.
The Dallas Mavericks owner tells his 8.8 million Twitter followers that crypto beats the traditional banking systems in a number of areas including security and efficiency.
“Now let’s discuss traditional lending vs. crypto lending. It’s simply a matter of trust and process.
In banking, there are layers upon layers of management and systems to protect against corruption, social engineering hacks and more. Those layers add cost, time, complexity and even worse, limit access to many who need it. In crypto there are transparent smart contracts with explicit rules that is available to anyone. Both have hacking risk, but smart contract risks decline over time.”
Cuban also says that proper regulation of crypto, such as beefing up customer protections, will only enhance the virtues of digital assets, increasing their edge over TradFi.
“None of this is changed by regulation or requirements for how funds are handled and stored. In fact, both will make the advantages of smart contracts for finance even stronger, allowing them to be safer and a better solution for many lending and finance needs. Again, with bright-line regulation, consumers can be protected and get the benefits of the technology.”
Lastly, Cuban says that people need to first educate themselves about crypto by using the technology themselves before making rash judgments.
“You really need to use it to understand it. Try using a smart contract, or even using ChatGpt to summarize some for you. It’s all transparent. But to dismiss it without having at least a basic understanding of what it can and can’t do is disingenuous.”
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