Mark Cuban explains why crypto is the future
As the cryptocurrency market continues to skyrocket – hitting a $1 trillion in February to double its market capitalization in just three months – enthusiasts such as Mark Cuban are increasing calls for the world to embrace digital and decentralized money.
Cryptocurrencies, the billionaire said, are the future, especially as the world recovers from once-in-a-generation pandemic.
The billionaire investor discussed the hurdles involving receiving and cashing stimulus checks faced by many Americans during the pandemic, whether the came via direct deposit or by mail. He also touched on the number of days banks need to clear the checks, pointing to the friction points still encountered when dealing with traditional financial institutions.
“The people who needed the money the most got it to slowest,” he told Lowe. “If everybody had a digital bank account, with or without digital coins, the money would just go just like that, right into your account from the Treasury, whenever there was a stimulus.”
The billionaire also added that transaction costs would drop significantly with digital assets.
While the cost of producing pennies, nickels, and dimes, is less than their actual value, the US Mint allocates billions of dollars yearly to produce these coins.
For the fiscal year last year, the bureau responsible for producing coinage for the US spent roughly $618 billion to produce all the coins combined.
“Then there’s just the physical dealing with it for retailers, which is expensive, and for banks, which is expensive,” he said. “Then there’s the sanitary side.”
There are no cons to moving to digital currency, he said. The only problem is that people are resistant to change.
“Who wants to know what a digital wallet is, or wants to deal with setting up a new type of account?”