Altcoins Talks - Cryptocurrency Forum
Learning & News => For Beginners => Basic Questions about Cryptos => Topic started by: Olamdetalkcoin on April 20, 2025, 08:15:01 PM
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Happy Easter and also happy Sunday to everyone, I hope you are all enjoying the Easter holiday. The Easter holiday makes me see how far blockchain/cryptocurrency have come in terms of structuring the space where we have the likes of DeFi, Web3, NFT, and even GameFi.
Take DeFi as an example; it has given many people hope in keeping their money where there is enough security, accessibility, transparency, and autonomy. Looking at traditional banks, you won't hear anything like staking or restaking in the system, which can increase your money, but DeFi makes all these possible.
Also, talking about useful projects that have come out of DeFi, the likes of $Hyperliquid, $Berachain, $Mantle, and even this newly listed project $Bank, a DeFi platform focused on enhancing Bitcoin's liquidity and enabling yield-generating opportunities within the DeFi ecosystem, all came out of this ecosystem and are currently doing well. If I were to choose the top ecosystem based on my experience, I would definitely choose DeFi as my top 2. What about you?
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There is no question that the coming in of DeFi under the flag of cryptocurrency and using the power of the blockchain has become like an oasis in the desert of the traditional banking system. Although I would not say that DeFi will one day totally replaced banks, the journey of DeFi is a very remarkable one especially in empowering people away from the controlling interest of the banking elites. Right now, there is still a long way to go to make DeFi like an everyday tool for the masses as people are still afraid of the complicated technological maze and the possibility of being scammed and hacked. Years from now, I am expecting more and who knows even bank conglomerates will even adopt the idea of DeFi into their own offerings.
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There is no question that the coming in of DeFi under the flag of cryptocurrency and using the power of the blockchain has become like an oasis in the desert of the traditional banking system. Although I would not say that DeFi will one day totally replaced banks, the journey of DeFi is a very remarkable one especially in empowering people away from the controlling interest of the banking elites. Right now, there is still a long way to go to make DeFi like an everyday tool for the masses as people are still afraid of the complicated technological maze and the possibility of being scammed and hacked. Years from now, I am expecting more and who knows even bank conglomerates will even adopt the idea of DeFi into their own offerings.
DeFi and Web3 were born alongside crypto, as these are the fundamental values that crypto possesses. We once anticipated cryptobanks during the 2017 ICO wave, but such projects failed, and DeFi stepped in to meet user needs without requiring a centralized entity. DeFi became so successful that traditional banks couldn't stay out.
The existence of DeFi is absolutely necessary, but the explosion of projects in this trend may not be as strong as in the 2021 cycle. LSD & LRD are not large enough to make DeFi stand out more than BTC and Layer-2. I can't yet envision DeFi being adopted in the operational processes of companies and organizations. We will need a prime example to better understand the applicability of DeFi.
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I don't think that DeFi will take over traditional banks or it will be a challenge to traditional banks, because it's not everyone that would invest in cryptocurrency. However, the volatile nature of crypto is a challenge to DeFi unlike traditional fiat currency. It's only people that are open minded to new development and technology that can key into the cryptospace. We only have few of these people compared to the world population that uses traditional banking system.
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Just don't forget to sell when the bull run reach its ATH. The lasting I have bought a Defi token, it was worth it until 2 cycles have passed and its price didn't go up anymore. Its stuck on $0.20 while during it ATH was more than $40.
Its only when its hyped that price will be good to hold. Its the usual case still in crypto regardless of how reputable those developers. They may be a well known personality like that Celsius dev but the market will do what it has to do.
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Take DeFi as an example; it has given many people hope in keeping their money where there is enough security, accessibility, transparency, and autonomy. Looking at traditional banks, you won't hear anything like staking or restaking in the system, which can increase your money, but DeFi makes all these possible.
Unfortunately, Banks have deposits that also offer fixed profits per year, where rich people today are more comfortable choosing banks because their asset reference is local currency or FIAT... if referring to cryptocurrency price fluctuations, then it is not much different from staking at a higher risk, because we may not get any profit when we find that the price of the coin we stake has decreased more than the APY offered from staking....
People who have reached the level of being very rich will prefer low risk, they are already rich and their job is only to maintain... even though they will get fixed money per year, what they like is the safest and least risky....
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Take DeFi as an example; it has given many people hope in keeping their money where there is enough security, accessibility, transparency, and autonomy.
FWIW, regular cryptocurrency also offer those points without all the complicated feature.
Looking at traditional banks, you won't hear anything like staking or restaking in the system, which can increase your money, but DeFi makes all these possible.
But on other hand, bank offer deposit/saving account with varied interest rate. Sometimes they even offer service to buy government bond.
Also, talking about useful projects that have come out of DeFi, the likes of --snip--, and even this newly listed project --snip--, a DeFi platform focused on enhancing Bitcoin's liquidity and enabling yield-generating opportunities within the DeFi ecosystem, all came out of this ecosystem and are currently doing well. If I were to choose the top ecosystem based on my experience, I would definitely choose DeFi as my top 2. What about you?
Bitcoin on alt. coin network/blockchain isn't Bitcoin.
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People who have reached the level of being very rich will prefer low risk, they are already rich and their job is only to maintain... even though they will get fixed money per year, what they like is the safest and least risky....
I'm not sure what the percentage is, but I know some rich people like the thrill of chasing more profits, hence why there is a high-risk, high-reward market like the leverage market. Sure, the majority is going to lose, but it's clear the biggest winners are the whales. That being said, it's not like they have to choose one option over the other when they can use all of them. They can allocate money for low-risk but guaranteed rewards like bank interest and use the rest of it to buy stocks/crypto and speculate on the market.
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DeFi, I thought that ship sailed a long time ago. :D
I don't think it can challenge the traditional banking system, there are lot of limitations and I would be surprised even if it can attack just 1% of the bank's business into decentralized finance. We can say the smart contracts are safer but there has been lot of vulnerabilities that's a cause for concern.
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I don't think that DeFi will take over traditional banks or it will be a challenge to traditional banks, because it's not everyone that would invest in cryptocurrency. However, the volatile nature of crypto is a challenge to DeFi unlike traditional fiat currency. It's only people that are open minded to new development and technology that can key into the cryptospace. We only have few of these people compared to the world population that uses traditional banking system.
Defi will never take over traditionl bank, because traditional bank are of governments and government is itself supporting defi for example Trump's World Liberty Financial project and many other Defi fundings that many governments and big companies made indicates that Defi have full support of these banks indirectly.
This has become a very big narrative and it will bring more partnerships very soon. Traditional banks system will remain in their place and do their work while Defi will do their while combination can be better.