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Is Blockchain the New Internet?

Mark Cuban anticipates that Blockchain is the new internet.

He stated that Ethereum has an advantage over Bitcoin for common people.

In a recent podcast, billionaire entrepreneur, investor, Shark Tank star, and owner of the Dallas Mavericks Mark Cuban talked with The Defiant about why he is bullish on crypto in general and DeFi in particular, and why he remains skeptical about Bitcoin as a currency.

Over the course of one hour, Cuban is still determined that Bitcoin is not a currency so much as it is a store of value:

“To this day, I’m not a believer that Bitcoin will become a currency,” he affirmed. “What’s really changed was that people started recognizing that it’s only a store of value.”

Is Cuban A Modern Nostradamus?

Cuban made a number of predictions that revealed his optimism about the future of blockchain. He stated that governments in the world may create their own digital coins for it is cheaper:

“We lose money on every penny and nickel minted. There’s just so much cost and stupidity associated with how we’ve always done things.”

He continued to call fiat money “untenable and unsustainable” before adding that he is not sure “if we’ll actually see everything collapse.” But he predicted that as the governments get more into digital currencies, he can see them selling off a percentage of their gold reserves and placing their earnings into BTC or ETH.

He accepted that basically, he doesn’t know. “A lot of this is trust: What do you trust? Who do you trust? How do you trust it? Bitcoiners, rightfully so, trust algorithmic scarcity. And that’s okay. But there’s a lot of underpinning trust that goes in there as well. You’ve got to trust electricity rates, availability, that nobody can get to 51%.”

For those who don’t know, “51%” means the proportion of computing power needed on a blockchain network to hijack that network. It looks pretty hard to do a takeover on that scale, but Cuban warns anyway.

Another analogy he returns during the podcast compares blockchain’s rise to that of the internet, with that there were initial, limited, early adopter applications before the whole thing became pervasive. Cuban sees smart contracts as the central moment when crypto “just blew up” and a major threat to the banking system. Because of this, he stated that “Ethereum has an advantage over Bitcoin for regular people.”

Cuban’s fondness for decentralized finance (DeFi) comes along with his love of Ethereum. DeFi services have built an entire financial infrastructure on top of the blockchain, with the use of smart contracts to create protocols that replace existing financial services in ways that, because of the blockchain, are unexpectedly transparent and interoperable.

Cuban said: “Smart contracts are real and remind me of the early days of the internet. With just HTML and some basic JavaScript, you could do a whole lot of business. It’s becoming friction-free banking. It’s easier to borrow in seconds. If you’ve got $200 in Ether or Bitcoin and you want to wrap it, and then you want to borrow $100 at 2.3% it takes you fifteen seconds. That’s incredible. That really begins to disrupt the banking industry.”

Cuban recently said that DeFi was fairer to users than stock trading app Robinhood and, on a WallStreetBets AMA, he stated that DeFi could explode in the next ten years.

To put it simply, Mark Cuban is bullish on the blockchain.

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