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Mark Cuban sees similarities in the current crypto market and the dot-com bubble

                                                            Der prominente Milliardär und Eigentümer der Dallas Mavericks – Mark Cuban – glaubt, dass der derzeitige Niedergang von Crypto dem des Internets in den frühen 2000er Jahren sehr ähnlich ist.  Er prognostizierte, dass sich der Digital-Asset-Sektor stabilisieren könnte, sobald Unternehmen damit beginnen, Smart Contracts in ihren Betrieb zu integrieren.

Crypto follows the path of the internet

The collapse of the cryptocurrency market has been more than apparent over the past few weeks. For example, after market capitalization largest digital assets – Bitcoin and Ethereum – Lost over 15% of their USD rating in the last 7 days.

According to Mark Cuban — the owner of NBA giants The Dallas Mavericks and an avid supporter of the asset class — the downtrend resembles the tech crash of the 2000s. In the late 1990’s, Internet-based businesses were the biggest trend in the industry and attracted a significant amount of capital.

However, there was a lot of speculation in this area and many of the firms did not turn a profit. This caused the so-called “dot-com bubble” and one that followed bear market. However, it is worth noting that some organizations like Amazon and eBay have weathered the tough times and are now among the top tech companies in the world.

On the other hand, the Internet is an essential feature of today’s society, participating in almost all business and social activities.

Cuban believes crypto’s success in recent years has been fueled by the enthusiasm for NFTs and DeFi was fueled. Still, he claimed digital collectibles are not as important as smart contracts. The American predicted that crypto could head north again once companies start using the latter:

“That must be the next driver. If companies 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 that make it fungible?) We need smart contract apps replacing SAAS apps.”
Mark Cuban sees similarities in the current crypto market and the dot-com bubble, Crypto Trading NewsMark Cuban, Fortune

Cuban Crypto Visions

The billionaire wasn’t always a proponent of the crypto universe. In early 2020, he criticized Bitcoin, claiming that it was easier to trade bananas than the primary digital asset. He later softened his stance and is currently acting as the sector’s advocate.

In addition, his NBA team accepts several cryptocurrenciesincluding Bitcoin, Ethereum and Dogecoinas a means of payment for game tickets and merchandise products.

However, Cuba’s favorite cryptocurrency protocol seems to be Ethereum. Not long ago, he praised it and its native token as the investment option with the greatest upside potential.

Last month, the American admitted that he was “very optimistic” about Ethereum’s upcoming transition from a proof-of-work mining model to proof-of-stake, known as “The Merge”. Cuban envisioned the endeavor will reduce the protocol’s energy consumption and turn ether into a deflationary asset.

Source: Crypto News Deutsch

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