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October 2, 2022
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“Why focus on Ethereum over Bitcoin” Well-known investor Mark Cuban

“Focus on Ethereum” Well-known investor Mark Cuban

Well-known US investor Mark Cuban explained in a podcast on The Defiant why Ethereum (ETH) is better than Bitcoin (BTC).

Mr. Cuban is an advanced person in crypto assets (virtual currency), and the NBA team “Dallas Mavericks (commonly known as Mabs)” that he owns also accepts tickets and goods purchases with Bitcoin.

When asked “What industry will grow rapidly in the next 10 years?” On the major bulletin board site Reddit, he answered “DeFi and NFT (non-substitutable token)”. In addition to Ethereum (ETH), Bitcoin (BTC) and Litecoin (LTC), it has revealed that it owns DeFi brands AAVE and Sushi.

He is also interested in a wide range of decentralized projects, commenting that Dogecoin is also a good teaching material for learning the economy.

Relation: Well-known US investor Mark Cuban “DOGE is a teaching material for learning the economy”

Cuban, who owns a variety of cryptocurrencies, said in this podcast that Ethereum is currently a better “value storage tool” than Bitcoin. The reason is that they highly value the future potential of smart contracts.

Ethereum, the foundation of smart contracts

Cuban praised smart contracts for allowing developers to create new decentralized applications and the potential for smart contracts to innovate and lay the foundation for new banking systems. He emphasized that most of these smart contracts are built on the Ethereum blockchain, and he also found value in Ethereum.

For Cuban, current smart contracts are reminiscent of the early Internet. He pointed out that the Internet, if code is written, can be applied to enable various things, and is currently unevenly distributed in society. He said he found similar possibilities for smart contracts.

Specifically, smart contracts allow us to commercialize anything digital and sell it after automation. It also points out the possibility of leading to innovation in the lending and borrowing of assets.

Although there is the inconvenience of being charged a lot of collateral, if more apps are born in the future, reliability will increase, and the trouble of opening a digital wallet will be reduced, it will be widely recognized as an option other than banks in the future. I thought that it would be done (possible in emerging countries etc.).

Innovative potential of NFT (Fungibility Token)

In addition, Cuban sees great potential as a “game changer” for NFTs (non-substitutable tokens).

NFT is a unique and indivisible token. It is mainly constructed according to Ethereum’s “ERC-721” standard, and due to its nature, it is often applied to collectibles such as idol and athlete goods, fine arts, and in-game items.

Relation: What is non-substitutable token NFT | Explaining the main features and future potential

Cuban pointed out that the traceability of tokens allows the author to benefit from resale of NFT. NFT allows authors to receive a percentage of their sales, not only when the author first sells it, but also when the buyer resells it.

This revolutionizes music, video and the Internet, explaining that musicians, for example, can make money by tokenizing and selling music videos rather than uploading them to YouTube.

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Author: A. Yamada
reference:The Defiant

Images used under Shutterstock license
“Cryptocurrency” means “cryptographic assets”

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