Mark Cuban identifies the next growth driver for the bitcoin industry

Adoption of commercial smart contracts by companies will be a new catalyst for the blockchain and crypto industry, according to billionaire Mark Cuban.

He compared the current market to the dot-com bubble. In the early 2000s, many hyped Internet companies with similar business strategies collapsed.

Crypto is going through the lull that the internet went through. After the initial surge of exciting apps, NFTs, DeFi, P2E, we saw the imitation phase as chains subsidized the movement of those apps to their chains (ala bandwidth and storage subsidies by startups in the 2000s)

— Mark Cuban (@mcuban) May 9, 2022

“The crypto industry is going through the lull that the Internet went through. After the initial surge of exciting apps, NFTs, DeFi, P2E, we are seeing a phase of imitation as networks move these apps onto their chains (as startups in the 2000s subsidized bandwidth and storage capacity),” Cuban noted.

In his view, blockchain projects that copy what “everyone has” are headed for a crash. There is no need for NFTs or DeFi solutions on every blockchain, the entrepreneur added.

He believes success will be found by platforms of smart contracts oriented toward commercial use able to replace SaaS applications.

What we have not seen is the use of SMART contracts to improve business productivity and profitability. That will have to be the next driver. When business can use Smart Contracts to gain a competitive advantage, they will. The networks that realize this will survive.

— Mark Cuban (@mcuban) May 9, 2022

“What we have not seen is the use of smart contracts to improve business productivity and profitability. This should become the next driver. When companies can use smart contracts to gain a competitive advantage, they will. The networks that implement this will survive,” Cuban said.

In October 2021 he advised rookie investors to focus on the largest smart-contract platform, Ethereum. Before that, the billionaire criticized the competing network Cardano.

In February, Cuban urged focusing on the value proposition when investing in crypto assets and to weed out projects around which “a lot of noise and little value” circulated.