Mark Cuban has always been a huge fan of the cryptocurrency revolution. He is in the list of very few capital investors who actually like cryptocurrencies and show their support towards this cause. This love is not unrequited and communities consider Mark a favorite with people like Elon musk.
In a recent interview with a popular YouTube channel Bankless, mark shared his views on open finance, DeFI and NFT’s. Here is a breakdown of what the popular American entrepreneur had to share with the world about crypto revolution.
Why the sudden support?
Mark shared his views on bitcoin, calling it a “store of value” instead of a technological advancement comparing it with traditional finance. He said that it still isn’t an alternative for the US dollar despite being so popular amongst masses. It cannot be seen as a regular currency although it is better.
“I’ve always compared it (Bitcoin) to Gold”
The popularity and prices of
An Ethereum FAN?
Mark shared that he was fascinated by the Ethereum network and smart contracts. He also admitted to minting an NFT on Mintable (A popular NFT platform). He explained the royalty process and ability to sell with freedom and ownership.
He identified the flaws of traditional trading and royalties where once sold the owner doesn’t get revenue share on reselling. There is no process or accountability for resale as compared to trading on block chain where every record is immutable so every resale can be linked back to the original creator.
Mark also told that he is learn solidity to understand Smart contracts better.
“That is the first thing that got me started on NFTs”.Interaction with Mintable and digital royalties
Thoughts on Decentralized Finance?
Mark started research on DEFI upon hearing terms like Yield farming, API, token binging, and collateral lending. He identified the problems with tradition finance and stated that even if you are over collateralized you still have to go to a bank fill out paperwork and it is a multi-day process to borrow money.
He shined his knowledge on Decentralized finance and how it is changing the lending and borrowing market, with no pedigree, no background checks and fair play. DEFI is also a good investment for investor with great yields and APY as compared to investing in banking.
What got me excited is really understanding that DEFI turned Bitcoin and Ethereum into personal banking”Mark on DEFI
I can borrow or anybody can borrow regardless the size in secondsMark on lending
“I have met senators trying to explain blockchain”Mark on regulations in blockchain
He said that as generation z become more aware, smart capital will find its way. He is optimistic on DEFI to be success as more institutions will eventually realize and adapt decentralize models.
He stated that most people see the APY, but not actually do the math and calculate the transaction fee for their investment or deposit. He said that if someone invests a $100 at an APY of even 60%, they should know that you have to hold it long enough to get break even.
This thing should be addressed as it can back fire on the whole industry. He said that platforms and networks should always keep this in mind, this can break the goodwill of the industry.
you gotta take care of the little guyMark talking about smaller investors
He said that even platforms like Aave are not taking this in consideration. A lot of people yield farming on a smaller level and trying to figure out are losing money.