“There are a lot of financial institutions that should be concerned. Banks should be scared.”Cuban wrote in his blog post this past Sunday.
Billionaire entrepreneur Mark Cuban thinks banks should be scared of cryptocurrency – specifically, decentralized finance (DeFi).
Mark Cuban Is Bullish on Blockchain Technology
Cuban is a liquidity provider for a decentralized exchange, he wrote in his blog post.
He is also invested in several blockchain startups within the crypto space and has a portfolio consisting of multiple cryptocurrencies, including crypto-heavyweights such as Bitcoin (BTC) and Ethereum (ETH).
Cuban Says Banks Should “Fear” Decentralized Finance
“No bankers, no buildings, no toasters, no vaults, no cash, no holding your money, no forms to fill out, no credit ratings involved.
The structure of these decentralized protocols drives Cuban’s interest in the technology, and ultimately, is the backbone to the billionaire entrepreneur’s belief that DeFi could be a serious competitor to traditional banks.
For example, through DeFi lending, users can lend out cryptocurrency like a traditional bank does with fiat currency and earn interest as a lender – one of the countless tools and advantages offered by DeFi applications to users!
“Everything is controlled by smart contracts – (it is) fully automated. You don’t have to get approval from anyone, and it takes minutes to take out a loan.”
Unlike the banks of tradition, there is no regulation on your money when using DeFi.
Simply put, DeFi applications aim to recreate the traditional financial systems with cryptocurrency and blockchain technology.
Banks should be scared indeed – the benefits of decentralized financial implementation extend from the poorest to the richest, outcompeting the banks in nearly every single way.
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