Mark Cuban hasn’t been a huge fan of bitcoin or the crypto space, but in a recent interview, he believes that anything based in decentralized finance (Defi) could potentially prove to be a gamechanger.Mark Cuban: Our Only Hope May Be in DefiIn the past, Cuban has often stated that he’d rather have “bananas” over bitcoin, claiming that the latter is not a store of value like so many other people think and that it wasn’t likely to serve as a problem solver during “doomsday” scenarios. Now, he’s claiming that interest rates are likely to hit a new peak, and that the only hope for anyone may lie in the Defi market.He states:Bitcoin is moved by institutional investors globally… The whole narrative of the debt impacting pricing is only real if interest rates go up and by how much. That’s when we
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Mark Cuban hasn’t been a huge fan of bitcoin or the crypto space, but in a recent interview, he believes that anything based in decentralized finance (Defi) could potentially prove to be a gamechanger.
Mark Cuban: Our Only Hope May Be in Defi
In the past, Cuban has often stated that he’d rather have “bananas” over bitcoin, claiming that the latter is not a store of value like so many other people think and that it wasn’t likely to serve as a problem solver during “doomsday” scenarios. Now, he’s claiming that interest rates are likely to hit a new peak, and that the only hope for anyone may lie in the Defi market.
He states:
Bitcoin is moved by institutional investors globally… The whole narrative of the debt impacting pricing is only real if interest rates go up and by how much. That’s when we can see the price of all assets impacted… [Bitcoin] is just like any stock. It’s price is driven by supply and demand.
For the most part, he thinks that the crypto space has adapted well and that there have been enough changes within the space to give it some leeway in the financial arena. He’s particularly impressed with Defi tokens and products in that they are designed to revamp traditional or standard financial services and items so that they can be more accessible to standard traders everywhere.
With interest rates allegedly about to plow through the roof, he thinks these products could potentially make things more stable for those looking to take out loans, insurance or other protective measures, though he also believes it’s still too much in the early phase and likely to not make much of an impact right away. Cuban comments:
I do think that Defi could change [what drives bitcoin] in a variety of ways, but it’s too early for it to be a significant impact.
Bitcoin MUST Be Viewed as Valid Money
In the meantime, bitcoin continues to impress industry analysts as of late with its stability and continued bull runs, and many of them argue that these runs will last well into 2021. Christ Bendiksen – head of research at the London-based digital asset manager Coin Shares – explained in a recent statement:
Bitcoins are valuable now because they have properties that make them conducive to fulfill the function of money. The more useful bitcoins become as money in the future, the more valuable they will become. Bitcoin valuation is clearly a topic that is being carefully considered by the investment elite… Year after year, bitcoin’s relational properties such as liquidity keep improving while the fixed properties such as its scarcity, privacy and transactability over telecommunications channels do not suffer any deterioration. This trend is consistently making bitcoin increasingly useful as money, which we believe will cause it to capture an increasing share of the global monetary market.