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Crypto prices increasingly reflect “real demand”

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In a Twitter thread at the moment, billionaire investor Mark Cuban weighed in on the present state and the way forward for blockchain know-how and funding, finally concluding that whereas there are actual obstacles to adoption asset prices are increasingly reflective of actual “utility” and “demand,” and that the day will finally come when crypto is “mature to the point we wondered how we ever lived with out.”

Cuban posted the 10-Tweet thread this morning, noting that because the asset class matures prices for cryptocurrencies typically are actually a byproduct of present use, versus speculative eventual utility.

Crypto and every implementation is evolving in actual time from “what’s the potential utility” to “What’s the present utility and what number of customers does it have”. Tokens/Coin prices are actually much less a guess on the longer term and extra a mirrored image of actual demand.

— Mark Cuban (@mcuban) Might 15, 2021

“Having more TPS and lower gas fees is not enough,” he wrote, possible referring to typically grandiose claims from varied layer-one chains with little exercise, “There must be a CURRENT network effect and significant user growth. This is a challenge for most L1s and L2s because w few exceptions, marketing in the crypto universe is beyond awful.”

He famous that he typically leaves groups “confused” when he asks about “their products, sales , gross margin dollars and profits,” however that these metrics are vastly vital in what he characterised as a tremendously aggressive area.

With out customers what worth does a blockchain or L2 resolution have ? However, they nonetheless have not found out find out how to promote. They pay premiums to builders and for liquidity and validators. However make investments little Advertising and marketing to draw customers

— Mark Cuban (@mcuban) Might 15, 2021

Along with advertising and marketing woes, the Dallas Mavericks proprietor stated {that a} lack of widespread understanding about key mechanics resembling protocol governance is hampering progress. Not sufficient is being carried out, he argued, to “emphasize the impact governance can have on platforms, and their products/services.”

Ultimately, nonetheless, he believes that governance participation — which at its finest is usually a “thing of beauty” — will develop into commonplace:

“I think over time, governance will be expected of all users and most will contribute by at least voting. But today, it is little understood and that’s is stunting some platforms growth.” 

One crypto will get over its present section — one the place customers must “be educated and products and services need to be sold and deliver on their initial promises” — then digital property “can mature to the point we wondered how we ever lived with out.” 

Cuban has been particularly bullish in his feedback on cryptocurrencies as of late, most notably reiterating his assist for BTC and Dogecoin as fee choices following disparaging remarks from fellow billionaire Elon Musk that will effectively have crashed markets: 

We at https://t.co/VUydpLFzGh will proceed to just accept BTC/Eth/Doge as a result of we all know that changing Gold as a retailer of worth will assist the setting https://t.co/bs7NvnJY8A and https://t.co/ELhbuLOBRV shrinking huge financial institution and coin utilization will profit society and the setting https://t.co/zu08F0STEQ

— Mark Cuban (@mcuban) Might 12, 2021

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