24.10.2021

The billionaire named the main advantage of Ethereum over Bitcoin

Billionaire, investor and star of the Shark Tank TV show Mark Cuban the day before became a guest of The Defiant podcast, the conversation during the recording of which was about cryptocurrencies.

During the conversation, Mark listed the main advantages of Ethereum over Bitcoin , and also noted that he still remains skeptical about the use of BTC as a real currency. At the same time, the billionaire believes that Bitcoin can be used as a storage medium, and not as an alternative to conventional currencies. Let’s talk about what is happening in more detail.

Mark Cuban works closely with cutting edge blockchain projects. In particular, at the end of January 2021, the billionaire accidentally revealed his address on the Ethereum network, thanks to which his savings became known. In addition to leveraging tokens from the decentralized finance niche, Mark also dived into the topic of NFT tokens and digital art.

The great thing is that Cuban’s development as a cryptocurrency investor happened very quickly. Back in April 2020, he announced that of all the coins, he only has $ 130 worth of bitcoins. And he did n’t even buy them . Now he understands the topic of DeFi and considers Ethereum to be a more advanced project than Bitcoin.

Which is better – Bitcoin or Ethereum

Cuban made several predictions that showed his optimism about the future of the blockchain. He said that governments around the world will create their own digital assets because they will be cheaper for the state to use. Here is Mark’s line in which he shares his attitude to the situation. The quote is from Decrypt .

We lose money for every penny and nickel minted. So much money and stupidity has to do with the way we have always produced things in the economy.

That is, Cuban is confident that digital assets in this case will be much more attractive. Indeed, to create them, you do not need to use a lot of components and people. And virtual coins will not wear out – and this is a plus.

In addition, the billionaire called paper money “insolvent and unsustainable.” He is also not sure if we will see if everything really collapses, referring to the global financial system. However, he predicted that as governments increasingly use digital currencies, they will sell a percentage of their gold reserves and even invest their revenues in Bitcoin or Ethereum.

The guest of the podcast compared the development of blockchains with the growth of the Internet at an early stage of its existence, since at first it also existed in a not very convenient and limited form, and not many people used it. Given this logic, Cuban sees the emergence of smart contracts as a turning point, when the cryptocurrency ecosystem “just exploded” and became a serious threat to the banking system. For the same reason, Ethereum has an undeniable advantage over Bitcoin, as it is the most popular platform for smart contracts at the moment.

Recall that smart contracts are essentially part of the program code that runs on the blockchain. They perform a certain action if the necessary conditions are met. In fact, contracts are not “smart”, that is, smart, because they do exactly what the developers created them for. However, the potential of contracts is truly incredible, as it allows two unfamiliar parties to interact with each other without raising questions of trust. In addition, they act in the same way and treat different participants under any circumstances, and it is no longer possible to change the contract after the launch. Read more about this topic in a separate article .

Cuban’s love of decentralized finance (DeFi) goes hand in hand with his love of Ether. DeFi protocols have created an entire financial infrastructure on top of the blockchain using smart contracts. They can replace existing financial services with products that are completely transparent through the use of blockchain. Here is a quote from Mark.

Smart contracts are real and remind me of the early days of the internet. With just HTML and some basic JavaScript, you could build a website and run big business. Banking becomes free of intermediaries, now it is easier to borrow funds in seconds. If you have $ 200 in Ether or Bitcoin and you want to wrap it up, and then you want to borrow $ 100 at 2.3 percent, it will take you fifteen seconds. It’s incredible. This area has the potential to disrupt the traditional banking industry.

Indeed, it is possible to exchange tokens with each other without using any centralized platforms. This can be done by the Uniswap platform, with the features of which we have already familiarized ourselves with .

We believe the billionaire is right about the potential of Ethereum and smart contracts. At the same time, Bitcoin is the oldest and most famous cryptocurrency – and this fact cannot be underestimated. Given the popularity of BTC, there is a high probability that a newbie investor will first of all want to invest in Bitcoin, and not something else.

Overall, however, Mark Cuban’s quote is encouraging. In a fairly short time, the cryptocurrency industry has received a powerful ally who is ready to spread the right information about the blockchain niche and actively share its advantages. And this trend will surely develop further.

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