10 May 2022 05:48, UTC.
Reading time: ~2 m
Amid bitcoin’s fall, billionaire investor Mark Cuban says the problems for cryptocurrencies are just beginning
According to him, cryptocurrencies are going through the same phase that Internet projects went through in the early 2000s, when a huge number of startups had virtually no useful use. Cuban believes that the crypto industry must pay attention to improving its business model to justify its high capitalization:
“Cryptocurrency is going through a phase that Internet projects have had. After the initial surge in the popularity of decentralized applications, NFT, DeFi, and P2E, we have seen a process of imitation, with blockchains subsidizing the movement of these applications into their networks.
But we haven’t seen the use of smart contracts to improve business productivity and profitability and that will be the next growth driver. When companies can use smart contracts to gain a competitive advantage, they will use them and the blockchains that realize this will survive.”
Cuban believes that the digital asset ecosystem has become too bloated and many projects offer similar solutions, so wannabes without unique uses and product-market fit will eventually die out:
“Copycat blockchain solutions that are similar will die out. There is no need for NFT or DeFi based on each blockchain and no need for bridges to move NFT between networks. We need smart contract applications replacing SaaS applications.”
The billionaire himself is positive about Ethereum (ETH) and the Polygon scaling solution (MATIC):
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