Decentralized Finance vs Traditional Finance - page 2.

Coinsfera

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Quote from: amishmanish on February 01, 2021, 06:01:41 AM

Traditional Finance has wielded a lot of power over lives of people for a very long time. This is because Financial institutions decided the flow of money. Who gets the cheap loans? Who gets the backing and credibility and access? Money and Value is really about access and the power to influence. Banks have a hell lot of both.
Bitcoin, blockchain and crypto in general has enabled a lot of people to have a shot at wielding that power. The information barrier is not high and it does not ask for pedigree. You don't have to be a Harvard graduate to have your plans taken seriously. If you have the ability to take an honest idea and make it work using the blockchain technology, you can easily be the next big institution. Just look at all these DeFi projects with people locking funds in their custody.
The question is are we ready for it? Do you have the capacity to engage and build access??

We cannot deny the effect of traditional finance (TRFI) in our lives. First of all, everyone uses it for different purposes, taking loans transferring money, and so on. We cannot immediately leave the TRFI because it is too big to ignore. At the same time, it seems like TRFI not working in favor of all people, the riches become richer, and the poors become poorer. Here comes Decentralized Finance (DEFI). Are we ready for it- probably not all individuals know what is DEFI. DEFI is appealing to many people because there is no central body and it is cheap and profitable than TRFI in some sense. DEFI is getting larger and larger. https://twitter.com/coinsferaglobal/status/1356873212185952262?s=20 As you can see it worthed less than $3 billion in June 2020 and it is now $40 billion in market capitalization. Many people use it and it is getting better. As the competitions continue it will be more friendly than it is now. If it goes like that then we have the capacity to make it even more prevalent.

amishmanish

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Quote from: SirLancelot on February 03, 2021, 02:44:27 AM

Quote from: amishmanish on February 01, 2021, 06:01:41 AM

The question is are we ready for it? Do you have the capacity to engage and build access??

The good thing about bitcoin and crypto is that we are in a world that money doesn't care about who you are. Whatever your race is, your religion, your gender, your nationality basically nothing about you matters, in real world if you are a very rich hedge fund kid with millions of dollars to play, you get backing from big names and you do whatever you want to do and you could lose tens of millions and still be bailed out by your father's business friends, that is how it works.

However in this world you could be Jeff Bezos and if you lose money you lose money and there is nothing that could help you, no bail outs, no tax cuts, it is purely on your hands to make money. This is why decentralized finance will over throw traditional finance in time, obviously it will not be just few days but it is going to happen one day or another and I am sure of it.

Very well said @SirLancelot. Cool name. You should join us in the BarnBridge Discord and the thread I have made about it. Please chip in with what you think about it. If you are into yield platforms, you'd know that BarnBridge has had a lot of attention the past few weeks.

We need people to have informed discussion on the DeFi phenomena. Like you said, it gives you the ability to use money in ways that only privileged bankers could till now. This is quite the double edged sword though. It is hard to tell if it will turn out to be really beneficial or just another fad.

While i wouldn't say that it'll overthrow traditional finance, it definitely has the potential to become an alternative. How it gets used depends a lot on whether people understand and build on it to have enough of a stake or whether it'll quickly get corporatized. As an example, how do we ensure that the decentralized governance doesn't end up as big money buying votes to effect outcomes in ways that benefit just them?

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Quote from: amishmanish on February 01, 2021, 06:01:41 AM

The question is are we ready for it? Do you have the capacity to engage and build access??

The good thing about bitcoin and crypto is that we are in a world that money doesn't care about who you are. Whatever your race is, your religion, your gender, your nationality basically nothing about you matters, in real world if you are a very rich hedge fund kid with millions of dollars to play, you get backing from big names and you do whatever you want to do and you could lose tens of millions and still be bailed out by your father's business friends, that is how it works.

However in this world you could be Jeff Bezos and if you lose money you lose money and there is nothing that could help you, no bail outs, no tax cuts, it is purely on your hands to make money. This is why decentralized finance will over throw traditional finance in time, obviously it will not be just few days but it is going to happen one day or another and I am sure of it.

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Traditional and Decentralized have their own pros and cons and even if we say right now that traditional financing are sucks, we can't stop them from doing business but we can make a big change only if you improve your knowledge about the opportunities around you.

Not everyone wants to use Decentralized market simply because they are afraid to take risk, and that's their choice so we have to respect it. There's nothing to worry about having a financial account now since decentralized market enables people from opening an account without requiring any documents, now its up to Traditional Financing if they are going to adopt blockchain technology or not.

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Quote from: iTradeChips on February 01, 2021, 06:51:52 AM

--snip--
Of course not all of the traditional finance people would gladly embrace cryptocurrency with open arms but they should at least give it a chance to include it in their institutions and see how it works for them too.

If you look closely, most traditional finance is open to use blockchain as a technology but only for replacing things like notary services. They won't adopt public cryptocurrencies except as commodities. They are already doing it.

Quote from: iTradeChips on February 01, 2021, 06:51:52 AM

Of course the normal people would embrace cryptocurrency as some sort of "people's currency" and want nothing to do with big finance, but Bitcoin itself is already being noticed.

What is Big Finance in your opinion? Why would normal people won't want anything to do with it. If the recent example of the showdown between retailers and Hedge funds over GME is considered, I am pretty sure that people want to have everything to do with big finance.

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Do your research.
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In managing finances, there has been a development from traditional trading in a positive direction through blockchain technology using the defi system. where the aim is to provide benefits to the community so that they can manage their finances without interference from other parties. and without us knowing we are already using it in our daily activities

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In my opinion, I think the people in finance should be able to see the worthiness or value of blockchain technology. Not just in cryptocurrency and finance but also the value of the technology in other sectors of industry and society in general. Of course not all of the traditional finance people would gladly embrace cryptocurrency with open arms but they should at least give it a chance to include it in their institutions and see how it works for them too. Of course the normal people would embrace cryptocurrency as some sort of "people's currency" and want nothing to do with big finance, but Bitcoin itself is already being noticed.

amishmanish

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Traditional Finance has wielded a lot of power over lives of people for a very long time. This is because Financial institutions decided the flow of money. Who gets the cheap loans? Who gets the backing and credibility and access? Money and Value is really about access and the power to influence. Banks have a hell lot of both.

Bitcoin, blockchain and crypto in general has enabled a lot of people to have a shot at wielding that power. The information barrier is not high and it does not ask for pedigree. You don't have to be a Harvard graduate to have your plans taken seriously. If you have the ability to take an honest idea and make it work using the blockchain technology, you can easily be the next big institution. Just look at all these DeFi projects with people locking funds in their custody.

The question is are we ready for it? Do you have the capacity to engage and build access??

Topic: Decentralized Finance vs Traditional Finance - page 2. (Read 258 times)