Mark Cuban Calls DeFi the Start of Personal Banking

March 03, 2021, 1:00 PM AEST (updated March 04, 2021)

In a recent video interview, the billionaire entrepreneur Mark Cuban has been digging deep into DeFi and has come to the conclusion that it could revolutionise the way we will do banking in the future.

During the interview he touched on a number of DeFi subjects including the introduction of personal banking, removing the friction of bankers, and the current highly-frustrating lengthy processes which will get replaced by DeFi platforms.

Customers Will Take the Path of Least Resistance

Cuban claimed that customers will always take the path of least resistance – when they can use DeFi just as easy as credit cards, then it will take off in adoption. We saw the same thing happen with the internet. He also mentioned that DeFi is currently very complicated to understand and has a long way to go in becoming simple enough for everyone to use.

Yield Farming: a Risky Game?

The co-host of Shark Tank believes that DeFi yield farming is a dangerous place for small investors – mainly due to the high transaction fees. He compared DeFi yield farming to a game of musical chairs, many players are liquidity chasing but the situation may be challenging when the music stops (and no one seems to know when it will).

Smart Contract Protocols Will Revolutionise the Way We Do Business

Cuban also explained that once standard DeFi protocols are established and set in place, smart contract systems can then be built, and will disrupt many industries. For example: once royalties can be managed by smart contracts then you’ll see an explosion in industries including healthcare, music, movies, photography sport and many others.

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