Cryptocurrencies that will outperform the crash according to Mark Cuban

In full “winter” of the cryptocurrency market, with all markers in the red, investor Mark Cuban commented that the momentum that cryptocurrencies have been experiencing is very similar to what the internet experienced in the early 2000s. For him, only networks that actually offer something useful are destined to stay.

According to the current owner of the NBA’s Dallas Mavericks, many cryptocurrency networks have focused on copying what others are already offering. For example, many seek to appropriate the market for non-fungible tokens (NFT), decentralized finance (DeFi) or gambling (P2E),

The entrepreneur is convinced, as he explained it in a Twitter thread, that cryptocurrency networks will find an important market niche by offering enterprise solutions. “When Businesses Can Use Smart Contracts to Gain a Competitive Advantage, They Will“, says Mark Cuban, who adds: “Blockchains that realize this will survive.

For Mark Cuban, smart contracts would play a key role. These are algorithms that run directly on a cryptocurrency network through what is called a virtual machine. Current networks that facilitate the execution of smart contracts include Solana, BNB Chain, Terra, Cardano, and Ethereum, among others.

The entrepreneur considers it important to develop SaaS (Software as a Service) where the entire operational load rests entirely on a decentralized cryptocurrency network and not on centralized servers.

Mark Cuban closes the thread by pointing out that “we don’t need NFT or DeFi on every blockchain. We don’t need bridges to move NFTs between chains“, this in relation to the recent boom of this type of product.

A good example of what Mark Cuban points out is what is happening with the so-called Ethereum Killer networks that seek to dethrone the second largest currency by market capitalization by copying its functioning (virtual machine and smart contracts). However, they eventually develop their own problems, such as solanes and saturations.

The Potential Mark Cuban Sees in Bitcoin and Ethereum

Mark Cuban maintains a fairly favorable stance towards Bitcoin and Ethereum. In 2021, the investor revealed that his portfolio was made up of 60% bitcoins and 30% Ethereum. He even invested in Ethereum’s side chain, Polygon.

The enthusiasm for these crypto-currencies has even led Mark Cuban to compare their returns to those of financial assets such as the S&P500 index, whose performance over the past decade has been significantly lower.

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