Decentralized Finance ("De-Fi") is a new trend which has been gaining steam ever since the first smart contract platform (Ethereum) came into existence 6 years ago. Right now, it's possible to borrow, lend, and even trade crypto assets without the need for a middleman. The introduction of stablecoins brought us the stability of Fiat along with the convenience of crypto. People can have money in Fiat, without the need for a bank account and still earn interest by holding it. This brings complete financial freedom to the world (something that was never thought possible before the inception of Bitcoin and Ethereum).
Of course, not everything is reds and roses. "De-Fi" has its limitations since it's fairly new in the mainstream world. Blockchain is still unable to scale to millions or even billions of people worldwide, so the experience will not be the same as with Banks. Fortunately, scaling solutions are on the works with the hopes of putting an end to such issues. If all goes well, "De-Fi" might beat banks in the future. Everything will depend on mainstream adoption for this to succeed in the long run.
What do you think? Will "De-Fi" beat banks in the long term? Or is it still too early to tell? Do banks consider "De-Fi" as a threat to their existence? Your input will be greatly appreciated. Thanks in advance.
Of course, not everything is reds and roses. "De-Fi" has its limitations since it's fairly new in the mainstream world. Blockchain is still unable to scale to millions or even billions of people worldwide, so the experience will not be the same as with Banks. Fortunately, scaling solutions are on the works with the hopes of putting an end to such issues. If all goes well, "De-Fi" might beat banks in the future. Everything will depend on mainstream adoption for this to succeed in the long run.
What do you think? Will "De-Fi" beat banks in the long term? Or is it still too early to tell? Do banks consider "De-Fi" as a threat to their existence? Your input will be greatly appreciated. Thanks in advance.
What do you consider as "beat"?
Maybe DeFi takes aways significant market shares from the traditional banking sector, but will DeFi make banking completely disappear? I severely doubt that. Not that I think there will still be grandmas and grandpas who need a bank in 70 years from now, but they are an industry that could theoretically be very agile. We are not talking about a single company here, but about the most powerful sector in the world. They might change the meaning of the word banking themselves, whatever their solution maybe if they feel threatened enough by crypto. The best they can do for now is to incorporate crypto and all the developments that are coming. I don't understand why they don't have crypto ATMs because they have all the KYC anyway? It would be awesome if you could just use your card, buy some Bitcoin and get a QR code printed out or an email that is encrypted or whatever. They have so many possibilities. Even if they took a cut like 1%, I am sure many would use it if they need it instantly.