Mark Cuban, American billionaire, owner of The Dallas Mavericks of the National Basketball Association and die-hard fan of DeFi crypto projects recently explained, in a blog post, why the US is wrong to push back on these innovative projects. Here is what he tells us in an article rich in arguments.
Why should we invest in DeFi ?
According to Mark Cuban, the United States is depriving itself of an important growth engine by closing the doors to decentralized Finance projects. Indeed, by limiting themselves in their refusal, the leaders only push the promising entrepreneurs of the country to go to invest elsewhere which is a brake on growth.
He also adds that in about ten or twenty years, entrepreneurs who today dare to take the plunge, will find themselves at the head of successful companies that contribute to change the world. The billionaire therefore does not understand why his country is turning its back on this potential especially knowing that the DeFi crypto projects have a bright future ahead of them.
What are the challenges of DeFi ?
To understand, the DeFi is none other than a mode of decentralization of the usual financial tools such as transactions, credits, insurance, trading … on the web 3.0. Mark Cuban also pointed out that due to their decentralized nature, the projects are not, strictly speaking, located in the United States, since most of the work takes place on Web 3.0. The latter refers to the universe of blockchain.
That is, the DeFi uses the nodes of blockchain technology to record all transactions conducted. The register is then open to the public which allows for great transparency and rigorous monitoring.
This is one of the main points that justly seduced our billionaire. For him, choosing between traditional companies and crypto companies is simple. He immediately chooses crypto companies and besides, he has already invested in some projects on the Polygon or Ethereum chain.
On what criteria did he make his choice ? Already, DeFi companies do not require a colossal investment to start or, they bring more profit. Then, the man takes into account criteria such as the growth rate, the current income, the community that supports the project and its competitive advantage in making up his mind.
For him, the refusal of legislators to join the system has nothing to do with the ethics of decentralized autonomous organizations. It’s just out of sheer stupidity.
Behind the generic signature “TCT Writing” are young journalists and authors with particular profiles who wish to remain anonymous because involved in the ecosystem with certain obligations.
DISCLAIMER
The words and opinions expressed in this article are the sole responsibility of the author and should not be considered as investment advice. Conduct your own research before making any investment decisions.
