Despite the collapse of one of the world’s largest cryptocurrency exchanges, billionaire Mark Cuban still believes in crypto.
Cuban has remained invested in crypto because he believes in smart contracts, one of the key underlying technologies that make crypto transactions possible, he explained on Twitter on Nov. 13.
A smart contract is a computer code that is embedded into a blockchain network. They operate according to “if/then” commands; if X, then execute Y.
Cuban believes smart contracts will have a critical impact in creating practical applications that have utility for everyone.
In Cuban’s view, a token’s value is derived from which applications it can be used for, and how valuable those applications are for users, he says on Twitter.
But what’s still needed is an application that is useful to people both within and outside of the crypto world, one that’s helpful enough that people would be willing to learn how to use cryptocurrency in order to use the application.
However, some finance experts advise against pouring too much money in crypto. “Cryptocurrencies are a confidence game par excellence,” James Royal, principal reporter at Bankrate, tells CNBC Make It.