NBA Dallas Mavericks owner and billionaire Mark Cuban talks about the value of Bitcoin, Ethereum and DeFi.
Written by: Mark Cuban, NBA Dallas Mavericks owner and billionaire Translation: Lu Jiangfei
As market competition becomes more and more fierce, encryption technology will become more productive, and the encryption industry will be able to succeed at this time. Both Bitcoin and gold are like a “financial religion”, Bitcoin is easy to trade/store/create, and there are no delivery issues. In addition, Bitcoin can also transfer value locally and globally, while gold is more troublesome. Take a look at Fort Knox in Kentucky, where 50% of the gold reserves of the United States are stored, so if you want more gold, you can go to Fort Knox, but remind everyone-it is also the largest military base in the United States one.
Among the available alternatives, Ethereum smart contracts perform better in verifying/purchasing/selling/delivering digital goods, and transaction processing is cheaper and faster, which makes Ethereum quickly become a kind of suitable for all digital products. The viable currency and transaction mechanism of things are not only powerful, but as more and more applications are added to the network, the scale of the network will also grow rapidly.
Compared with banks, the Ethereum smart contract for decentralized finance (DeFi) also provides people with better deposit/savings/transaction financial tools. This smart contract is automated, trustless and supports near real-time processing Trading solutions. For the same transaction, the bank relies more on labor and requires a fixed place to provide services to customers, which will increase transaction costs and bring more friction.
In terms of altcoins, it can provide rewards to its holders. In this case, token holders only need to provide more productive services to gain income, so altcoins can easily win more users. Obviously, altcoins have very small entry barriers and are very competitive. Although participants will encounter some risks, rewards can always attract more people, which is also a better solution.
As for meme coins like Dogecoin (DOGE), these meme coins can only work when they gain utility and users are willing to use these tokens in actual use cases. As long as you can pay with Dogecoin (because we all know that Dogecoin’s annual inflation rate is set at 5%, about 5 billion tokens are issued each year), as the utility of tokens continues to grow, people can get some from it Value, Dogecoin will also become like other currencies…
As long as more companies use Dogecoin to provide products/services, Dogecoin can become a usable currency because its purchase value may be better than the dollar in the bank. Of course, it may be because inflation is the “hit” of Dogecoin, and it will also encounter problems such as soaring interest rates or declining or stagnating market purchasing power. Of course, it is legal to make a joke now.
All in all, encryption technology not only means that productivity and efficiency can be improved, but also that people no longer rely on “trusted institutions.” How many PPP applicants still trust the big banks? Do you trust your health insurance company? Encryption technology is trustless, and it is a better way to process transactions.
Therefore, if there are people who say they don’t understand why crypto assets are valuable, you can show them my analysis.
Source link: twitter.com
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