Mark Cuban, the owner of the Dallas Mavericks, thinks crypto’s present collapse is similar to the Internet’s in the early 2000s. He predicted that once firms begin adopting smart contracts into their operations, the virtual asset industry would stabilise.
The downfall of the bitcoin market has been clear in recent weeks. For example, the two most valuable digital tokens by market capitalization – bitcoin and ether – have lost more than 15% of their USD value in the last week.
According to Mark Cuban, owner of the NBA’s Dallas Mavericks and ardent backer of the asset class, the decline is similar to the 2000s tech crash. Internet-based businesses were the main trend in the industry in the late 1990s, and a lot of money was coming into them.
However, there was a huge speculation in the industry, and many of the companies failed to make a profit. This resulted in the so-called “Dotcom bubble” and a subsequent bad market. It is worth mentioning, however, that other firms, such as Amazon and eBay, have weathered the storm and are now among the world’s leading technology corporations.
In contrast, the Web is a significant aspect of modern society, participating in nearly every economic and social activity.
Cuban believes that the excitement surrounding NFTs and DeFi has contributed to crypto’s recent success. Nonetheless, he asserted that digital collectibles are not as important as smart contracts. The American anticipated that once businesses begin to use the latter, crypto might resume its upward trend:
“That will have to be the next driver. When businesses can use smart contracts to gain a competitive advantage, they will […] We don’t need NFTs or DeFi on every chain. We don’t need bridges to move NFTs between chains (does this make it fungible?) We need smart contract apps replacing SAAS apps.”
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