Why Mark Cuban and Others Still Believe in Crypto

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Yes, the crypto winter seems endless, and, yes, the industry has been blighted by the FTX debacle and the arrest of Sam Bankman-Fried.

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Despite this gloom and misfortune, many experts still strongly believe in crypto and its value and will not be deterred by the opinions of naysayers.

Mark Cuban: the value lies in the usefulness

Mark Cuban, a billionaire entrepreneur and owner of the NBAs Dallas Mavericks, said he was still bullish on the space and invested in crypto, despite the collapse of FTX, mainly because he believed in smart contracts.

A token’s value is derived from the apps that run on its platform and the utility they create, he tweeted on November 13.

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Bitcoin has power

According to a new Bakkt survey, consumers seem to be ignoring market volatility in 2022 and the collapse of FTX: before the failure of FTX, 89% of crypto owners said they were likely to buy crypto at the future, but sentiment only fell by 7%. % after FTX events. Meanwhile, curious crypto sentiments have continued, according to the survey.

Cryptocurrency and bitcoin in particular have already shown that they offer real value and can stick around, said Dan OPrey, director of bitcoin and crypto products at Bakkt. I believe Bitcoin is unique from crypto because it is a truly decentralized leaderless digital currency and its usefulness is only growing from here, both in adoption and application.

OPrey added that although we are in a bear market, it is this type of volatility that has revealed some of the unsustainable and harmful practices.

It’s not the first downturn and it won’t be the last, but everything that’s happened recently is helping to rid the market of bad actors, he said, adding that what happened with FTX was an institutional failure due to fraud, not a cryptocurrency failure. Technology.

The story continues

He added: “Players who will last for the long haul will be open to transparency about their practices and welcome thoughtful regulation.

Experts: FTX Wasn’t a Crypto Problem

Others backing the space include Tim Draper, venture capitalist and founder of Draper Associates who said in November that Bitcoin would surpass $250,000 in June 2023.

Just like several other crypto proponents, he noted that one of the main strengths of Bitcoins is that it is decentralized.

FTX was centralized around one person, Draper tweeted on Dec. 3. Decentralized currency is the great opportunity we have for economic evolution. Governments need to design software to tax businesses operating in a Bitcoin walled garden so that they have more confidence in Bitcoin.

The consensus among bitcoin maximalists and crypto believers seems to be that FTX was not a crypto event and that, despite the massive pain it inflicted on thousands of customers, a positive result is that it eliminates bad actors and helps the industry get back to the basics of what crypto and blockchain really are.

Saying you’re not bullish on crypto because of FTX is like saying you’re not bullish on stocks because of Bernie Madoff, says Ric Edelman, former financial adviser and founder of Digital Assets. Council of Financial Professionals. FTX has nothing to do with blockchain or digital assets any more than Madoff has anything to do with the stock market. Madoff was just another con man who carried out a massive fraud. And it sure looks like Sam Bankman-Fried is also a con man who carried out a massive fraud. Madoff used the scholarship to perpetrate his scam; SBF used cryptography.

Edelman pointed out that the underlying benefits of blockchain and digital assets are unaffected by FTX and SBF, as blockchain technology enables businesses to operate faster, more securely and cheaper, with greater transparency. and inclusion.

That’s why 90% of all banks in the world are developing this technology, with more than 70,000 software engineers engaged, he said. Over $35 billion has been invested in this technology in the past two years alone; PwC says it will add nearly $2 trillion to the global economy by 2030, and McKinsey says 70% of global GDP will be digital by 2030. BRI says every government will deploy CBDCs by there China and the Bahamas already have it and there is broad bipartisan support in almost every country.

The future after FTX

In the aftermath of FTX, Edelman said, several positive developments occurred in the space. To name a few: Warner Music announced that fans can buy and listen to NFT music through the Polygon blockchain, and Goldman Sachs announced plans to spend tens of millions of dollars to buy or invest in crypto companies.

Indeed, in a Dec. 6 Wall Street Journal op-ed, Goldman Sachs CEO David Solomon wrote: The rapid collapse [of FTX] raised doubts about cryptocurrencies and blockchain technology, the software behind crypto assets.

But, he added, unlike other waves of innovation, blockchain technology has arrived and disrupted heavily regulated industries.

The invention of email did not make FedEx or UPS obsolete. But blockchain technologies such as peer-to-peer payments and the tokenization of traditional assets are changing businesses, from how they raise funds to how investors trade stocks. This has far-reaching implications for the global economy.

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