Author

Topic: Will "De-Fi" beat Banks sometime in the future? (Read 398 times)

legendary
Activity: 3108
Merit: 1351
www.Crypto.Games: Multiple coins, multiple games
September 13, 2021, 05:23:12 PM
#52
Absolutely, yes.

More and more people are waking up to the stupidity of the fiat system on the daily.

El Salvador adopting bitcoin is just the first step in many to come when it comes to the institutional and nation-wide adoption of cyrptocurrencies. Once the mass adoption process is complete, it is inevitable that Defi will be required to build on top of these existing crypto infrastructures and to leverage technology to increase transactional efficiency.

That's very optimistic of you. But I don't think "De-Fi" will actually beat banks since Fiat is too hard to beat. It will co-exist with "Ce-Fi" for many generations. What's important is that people have an alternative to the current monetary system subject to manipulation, fraud, and corruption. As long as people have an "escape route", there should be nothing to worry about. "De-Fi" has always been about bringing "banking to the unbanked", and so far, it's been doing a pretty good job at it.

Of course, "De-Fi" is not perfect. The concept is still fairly new in the mainstream world, so expect some bumps on the road ahead. Volatility and certain vulnerabilities, can make "De-Fi" a lot more riskier than "Ce-Fi". Not many people are able to deal with these risks, so they turn to banks instead. Some countries are embracing "De-Fi", so it should only be a matter of time before it becomes a "force to reckon" with. Just my thoughts Grin
jr. member
Activity: 38
Merit: 1
It is very likely to beat the bank, because DeFi has the trust that finance most needs.

Banks are controlled by the government.As long as they are controlled, they are insecure, controlled, and unfree.
Now, in addition to my daily needs, such as credit cards, car loans, and mortgages in the bank, all other assets are in cryptocurrency wallets and DeFi.
newbie
Activity: 322
Merit: 0
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. Smiley

In the near future, I think.
I'm into Defi now cuz I can see the potential, recently found Singularity Dao and explored this project, then I found out about the listing on Kucoin and bought
Now kids want an easy profit, buying meme coins which is so stupid to me
Defi is underrated even being a bit hyped now
We know it and we go for Defi projects
full member
Activity: 504
Merit: 102
CLEARSIGHT- THE #1 BLOCKCHAIN JOB PLATFORM
DEFI is just a financial solution and it will not be able to replace the banking system the way people expect Bitcoin.
People will need safety, security, and certainty about their money. If DEFI projects really meet the needs of the people, it will certainly be the choice of everyone in the future. It's too early to conclude anything.

Exactly. "De-Fi" is still far from replacing banks anytime soon. Its biggest downsides are hacks, theft, and price volatility. People want stability, safety, and reliability, so most of them resort to banks to help secure their financial future. We should give the "De-Fi" industry more time to mature as it's just starting to blossom. Even so, it's unlikely banks will disappear since they control the world's economy. As long as Fiat exists, banks won't be going anywhere. One would expect "De-Fi" and "Ce-Fi" (banks) to co-exist for many generations.

What matters is decentralization and censorship-resistance in order to fulfill crypto's vision of "banking for the unbanked". As long as "De-Fi" stays true to its roots, there should be nothing to worry about. Just my thoughts Grin

Sure, as long as the FIAT survives, the banks aren't going anywhere. We need political, economic and social stability. We believe in government but are not sure about FIAT.
The idea of a financial system that combines CEFI and DEFI looks good, but how can it be done? This must depend on El Salvador, they are accepting Bitcoin as a legal means of payment. Maybe they will combine DEFI and CEFI in their financial system.
hero member
Activity: 1526
Merit: 596
Absolutely, yes.

More and more people are waking up to the stupidity of the fiat system on the daily.

El Salvador adopting bitcoin is just the first step in many to come when it comes to the institutional and nation-wide adoption of cyrptocurrencies. Once the mass adoption process is complete, it is inevitable that Defi will be required to build on top of these existing crypto infrastructures and to leverage technology to increase transactional efficiency.
legendary
Activity: 3108
Merit: 1351
www.Crypto.Games: Multiple coins, multiple games
DEFI is just a financial solution and it will not be able to replace the banking system the way people expect Bitcoin.
People will need safety, security, and certainty about their money. If DEFI projects really meet the needs of the people, it will certainly be the choice of everyone in the future. It's too early to conclude anything.

Exactly. "De-Fi" is still far from replacing banks anytime soon. Its biggest downsides are hacks, theft, and price volatility. People want stability, safety, and reliability, so most of them resort to banks to help secure their financial future. We should give the "De-Fi" industry more time to mature as it's just starting to blossom. Even so, it's unlikely banks will disappear since they control the world's economy. As long as Fiat exists, banks won't be going anywhere. One would expect "De-Fi" and "Ce-Fi" (banks) to co-exist for many generations.

What matters is decentralization and censorship-resistance in order to fulfill crypto's vision of "banking for the unbanked". As long as "De-Fi" stays true to its roots, there should be nothing to worry about. Just my thoughts Grin
sr. member
Activity: 980
Merit: 252
People especially the boomers are still have trust issue for digital wallet like defi, they think everything on the internet are hackable by the hackers and their money will be lost.
But for the millenials, there are a lot of people already who put their assets to digital assets.
So it means, it won't come true in next 5-10 years. But i'm sure in 20+ years. This could possible to happen in this world.
full member
Activity: 760
Merit: 104
Moonbet.io
For now it is impossible, because banks are still a public trust in transacting, saving and borrowing money.
In addition, there are still many people in this world who are still common in the world of cryptocurrency.
For the positive and negative side there must have been an impact for the users.
But to replace the bank I think it's too difficult.
member
Activity: 534
Merit: 19
I think it could replace banks in the future. It just needs to mature enough and market should be mass adopted for it to be truly functional and could potentially replace banks. I am tired with the old money banking system specially that inflation is really hitting us faster than ever before. Crypto assets is saving me these days so for me, DeFi is life changing.
sr. member
Activity: 1372
Merit: 250
Seabet.io | Crypto-Casino

I think DEFI is still a mystery and the developers will help us see a lot of things with their improvements. DEFI has only been around for about two years and has already gained massive amounts of money locked into the protocol. We still have a lot of time to expect improvements from new generations of cryptocurrencies.
two years that made the growth of the crypto market tremendous. the market is really getting its strength again from project defi. indeed we will not know in the future this will be the main choice or there will be other alternatives.
The bank until now is still the best in financial management which is considered by everyone.
full member
Activity: 504
Merit: 102
CLEARSIGHT- THE #1 BLOCKCHAIN JOB PLATFORM
DEFI is just a financial solution and it will not be able to replace the banking system the way people expect Bitcoin.
People will need safety, security, and certainty about their money. If DEFI projects really meet the needs of the people, it will certainly be the choice of everyone in the future. It's too early to conclude anything.
- Agreed, Defi is just another name for crypto generations and as comparison sessions between crypto and banks, very few people can believe that Defi and crypto can beat the tradition that comes from the government because the needs of the future bank are still more adaptive as their staff and services will be at the center to answer most of the failed transactions while Defi or crypto only have one-way interaction, sometimes asking and not answering. The supremacy of a generation of bankers fully authorized and guaranteed by the government, Defi in the end is just a roadside stone and doesn't have much future meaning

I think DEFI is still a mystery and the developers will help us see a lot of things with their improvements. DEFI has only been around for about two years and has already gained massive amounts of money locked into the protocol. We still have a lot of time to expect improvements from new generations of cryptocurrencies.
hero member
Activity: 1302
Merit: 503
DEFI is just a financial solution and it will not be able to replace the banking system the way people expect Bitcoin.
People will need safety, security, and certainty about their money. If DEFI projects really meet the needs of the people, it will certainly be the choice of everyone in the future. It's too early to conclude anything.
- Agreed, Defi is just another name for crypto generations and as comparison sessions between crypto and banks, very few people can believe that Defi and crypto can beat the tradition that comes from the government because the needs of the future bank are still more adaptive as their staff and services will be at the center to answer most of the failed transactions while Defi or crypto only have one-way interaction, sometimes asking and not answering. The supremacy of a generation of bankers fully authorized and guaranteed by the government, Defi in the end is just a roadside stone and doesn't have much future meaning
full member
Activity: 504
Merit: 102
CLEARSIGHT- THE #1 BLOCKCHAIN JOB PLATFORM
DEFI is just a financial solution and it will not be able to replace the banking system the way people expect Bitcoin.
People will need safety, security, and certainty about their money. If DEFI projects really meet the needs of the people, it will certainly be the choice of everyone in the future. It's too early to conclude anything.
full member
Activity: 567
Merit: 148
I think that banks and governments consider crypto to be a real rival for them. Crypto market is uncontrolled, so authorities just can't approve of developing crypto and replacing traditional financial systems with crypto. So they are likely to start forbidding crypto to some extent. Or they will create their own currencies that will be under their control
full member
Activity: 686
Merit: 103
www.fintropy.io
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. Smiley

 It is really easy for people to interact with banks now, but they are not familiar with Blockchains, so it is really difficult to some to start using digital money, but personally I strongly believe in crypto world and I hope that we will really use Defi-projects and Blockchains for all our payments and other financial operations in the future, as nobody can ban your money in this world, you are free.
hero member
Activity: 2002
Merit: 535
In my opinion, maybe not because Crypto huge risk they don't have any office or something where people can ask for their loss or something other side bank have this kind of facilities and people need Trust security not risk
If you look at the good projects majority have offices but i did not understand the loss part. If you are trading in the stock market do you go to the stock exchange and raise your complaints and see how you accumulated the loss. If you end up in a loss it is fairly simple, you did not study the project and you took the risk and lost your money.

Defi will not only kill banks in the future but destroy their operations. I can provide liquidity for USDT-USDC and earn some decent coins which appreciate in value than the stable coin itself without been censored, and can stake my money and unstake at will without having to fill any paper and no need for central approval. Although at the moment, the risk are there like coin dumping, rug pulling, flash loan exploit and contract bug. A lot still need to be done, we shall get there.
Since you very well said about the negative aspect, do you think it can ever replace the baking sector. How about you want to make any transactions and purchase cryptocurrency or invest in a new project, the only option is you use the baking system.
member
Activity: 843
Merit: 52
Defi will not only kill banks in the future but destroy their operations. I can provide liquidity for USDT-USDC and earn some decent coins which appreciate in value than the stable coin itself without been censored, and can stake my money and unstake at will without having to fill any paper and no need for central approval. Although at the moment, the risk are there like coin dumping, rug pulling, flash loan exploit and contract bug. A lot still need to be done, we shall get there.
jr. member
Activity: 470
Merit: 2
In my opinion, maybe not because Crypto huge risk they don't have any office or something where people can ask for their loss or something other side bank have this kind of facilities and people need Trust security not risk
jr. member
Activity: 1106
Merit: 7
DeFi is innovative in the finance sector. It is a challenge to the banking sector as investment projects and other banking transactions can be carried out just as obtainable in the bank, but this time, without a third party. Currently, many people are not yet in touch with the internet talk less of embracing crypto currency and the DeFi world. It will take some time if not years to meet up or overtake the banking sector which has been in existence for decades. With awareness, trust and security, DeFi can challenge the banking sector in the future.
sr. member
Activity: 1876
Merit: 318
This may be likely, will crypto beat fiat someday?
if it is about someday, we will not know because we don't know the future. We don't know what will happen 100 years later or 150 years later.
if it is about the current and near years, I think it is impossible for Defi to beat banks. Because Banks are such complicated systems from a country and also world bank. This is centralized. Countries and also world banks will never let this be beaten by DeFi.

We are all not fortune tellers, so we don't know what will happen in the future. But I agree with you, speaking of the current situation, it is very
unlikely that De-Fi can replace banks. Moreover, the government always wants to control the people's finances, if the government allows De-Fi
to replace the bank they will lose that control. After all, the banking system has been running for a very long time and many people seem to
still be comfortable using it. So it seems unlikely that De-Fi beats the bank.
member
Activity: 1708
Merit: 13
KUWA.ai
It is difficult for Defi to beat a bank, nowadays people feel more secure in saving money in a bank than in one of Defi's projects, besides that banks have been implemented in everyday life, both in society and in the state.
hero member
Activity: 2646
Merit: 588
★Bitvest.io★ Play Plinko or Invest!
We’re talking a lot of this already, cryptocurrency can’t replace banks totally and we all know we still need the banks for liquidity and I don’t see any country without a bank, government will not allow that to happen.

Yes, a lot of good things by using DeFi but not every is aware of this, we are still far from the mass adoption so this wont happen in the coming years but of course, I’m also open for this possibility even if it seems too impossible to happen.
There’s a lot of factors to be consider before this thing to happen, we might not be able to witness it because it takes time and maybe the next generation can have now the choice either to use fiat or crypto, they’ll work better at the same time. If that days come, hopefully cryptocurrency has been widely use and offers the same things just like the banks, especially the loan part of the banks.

The concept itself of DeFi is actually great but I don't think we will see this flourish and replace banks in our lifetime.
The current situation alone in DeFi market is quite vulnerable, hacking, inside job are just common issues in DeFi platforms.
So the trust of using DeFi platforms is still questionable to many. Besides only small percentage of global population are in crypto market.
hero member
Activity: 2016
Merit: 549
Leading Crypto Sports Betting & Casino Platform
This may be likely, will crypto beat fiat someday?
if it is about someday, we will not know because we don't know the future. We don't know what will happen 100 years later or 150 years later.
if it is about the current and near years, I think it is impossible for Defi to beat banks. Because Banks are such complicated systems from a country and also world bank. This is centralized. Countries and also world banks will never let this be beaten by DeFi.
full member
Activity: 2086
Merit: 193
We’re talking a lot of this already, cryptocurrency can’t replace banks totally and we all know we still need the banks for liquidity and I don’t see any country without a bank, government will not allow that to happen.

Yes, a lot of good things by using DeFi but not every is aware of this, we are still far from the mass adoption so this wont happen in the coming years but of course, I’m also open for this possibility even if it seems too impossible to happen.
full member
Activity: 700
Merit: 100
Decentralized finance technology was created as a solution to the lack of public access to financial services, for example as follows:

-Some people do not have access to create bank accounts or use financial service products.

-There are fees charged to customers in utilizing financial services.

-There is a potential for misuse of data that can be done by financial services companies.

-Financial service companies are vulnerable to intervention by the government or regulators.

-Send sending money can run for a long time.
Financial service companies have never been transparent in providing customer data.

Because of these benefits, coupled with the security of a capable blockchain system, it is not surprising that many people say that DeFi can be a public financial solution in the future. Moreover, all financial service activities such as lending and borrowing, crowdfunding, and insurance can be carried out over the DeFi network.









https://blog.pluang.com/cerdascuan/investasi/decentralized-finance-masa-depan/
full member
Activity: 602
Merit: 102
Trident Protocol | Simple «buy-hold-earn» system!
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. Smiley

The very good development that they have prepared from the beginning before, this shows that the convenience of using crypto is getting better at this time and the crypto world is starting to offer a solution to people's concerns regarding the survival of the crypto world in the future.

De-Fi as a whole has an important role to play in doing all of this well, but due to the reach of the blockchain which is not yet able to accommodate or reach millions of people around the world, this does not allow De-Fi to replace or beat Banks in the long term, even as a threat yet. so meaningful for the continuity of the Bank or fiat currency.
member
Activity: 560
Merit: 26
DeFi of today No bit perhaps the improve futures ones.
The question is how often do we hear that banks get rob the way DeFi is been exploit everytime. The last one that happened about 600 million until the hacker realized he couldn't spend the fund and return it claiming that he was protecting the project, who does that?  Cry
Bilaxy exchange and liquid exchange was also hacked, now tell me how we are going to realize this revolution whe the environment is not that save for investors. We have lots of wall to build to protect everyone.
legendary
Activity: 3108
Merit: 1351
www.Crypto.Games: Multiple coins, multiple games
For me, defi-projects have already replaced banks. If 2 years ago I deposited my money in a bank and got 0.1% in dollars, now I can deposit my crypto in different DEFIs and get much bigger interests even in stablecoins. So personally I strongly believe in the crypto industry and I hope that it can replace banks one day, as it is more reliable to trust technologies and blockchains than people who work in banks.

"De-Fi" rewards are quite attractive compared to banks' interest rates. But they're still struggling to reach mainstream adoption because of Blockchain tech's scalability bottlenecks. High fees and slow speeds makes "De-Fi" inferior to mainstream banks. No matter how far "De-Fi" will go, it'll never replace banks because of its decentralized and censorship-resistant design. Banks are endorsed by governments, which gives them a high level of trust among everyday people. In the US, banks are insured so your money is protected against undesired situations (hacks, theft) in real life. Not like crypto where you're solely responsible of protecting your funds. If you become a victim of a hack, there's no way to claim your money back. It's why I strongly believe "De-Fi" is far from replacing banks anytime soon. Things could change if "De-Fi" solves its underlying issues. Just my thoughts Grin
newbie
Activity: 28
Merit: 1
I found another interesting article about DeFi, I think many people will be interested  https://blockster.com/blockdesk/1424_square-is-building-a-defi-business-using-bitcoin
jr. member
Activity: 95
Merit: 2
Yes, it only makes sense. The crypto revolution is happening right now and in the next 5-10 years it’s going to take over. Right now there are so many smart people, money, and etc in crypto and more are being drawn to it daily. Crypto helps the world in many ways and once the technology is better the whole world will start using it and most banks will be out of business. I think some of the financial structure will stay but most will be gone and replaced by  defi. I think projects like NEAR, ETH, Sol and ADA are going to be huge in the near future.
jr. member
Activity: 840
Merit: 6
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. Smiley
If anyone wants to use DeFi at scale it will need to be done on an L2 or sidechain like Aurora otherwise gas fees will make it unprofitable.
legendary
Activity: 2212
Merit: 1008
For me, defi-projects have already replaced banks. If 2 years ago I deposited my money in a bank and got 0.1% in dollars, now I can deposit my crypto in different DEFIs and get much bigger interests even in stablecoins. So personally I strongly believe in the crypto industry and I hope that it can replace banks one day, as it is more reliable to trust technologies and blockchains than people who work in banks.
hero member
Activity: 1904
Merit: 622
ROLLBIT > Crypto's Most Rewarding Casino
The bank is something big, complicated, regulated, and also full of power, of course, it is under the government of a country, with many interests and significance from many parties.
Although nothing is predictable accurately and we will not know the future exactly, beating banks is something that is very difficult, even it si De-Fi or other types of crypto projects.

The interests of the banking system, including taxes, management costs, and the cost of money, are now nearly zero or even negative, whereas the interests of the numerous sites are now almost zero or even negative. Defi can achieve 100% in exceptional circumstances, therefore there is no competition, platforms defi triumph over traditional banks, and more and more people select defi as their primary investment resource.
Are you sure about this?
full member
Activity: 286
Merit: 100
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. Smiley

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.
member
Activity: 744
Merit: 10
Syntrum.com
I like the loan feature on the DeFi platform, currently the DeFi platform also accepts NFT as loan collateral. I like this feature, like banking in general, we no longer need to go to the bank office with documents such as land certificates, houses and cars for loans, but everything takes time and we will see the banking system is no longer used and users will love the features it has to offer
by DeFi
member
Activity: 536
Merit: 15
It is not impossible for Defi to replace the banks to some capacity in providing financial services for people in the future through the Blockchain, the problem i believe still lies in the global acceptance of cryptocurrency as a secure and trusted means of doing financial transactions. NFTs for example are good for people to use as assets for financial services and more innovations like this will increase Defi adoption.
member
Activity: 155
Merit: 10
To me, time will tell, because cryptocurrency revolves around risk and the bank is a set-up that operates on people confidence which is base on trust and limited risk, so the risk element is a barrier for defi to beat banks, but we never can tell what will happen, but for now, dont think so.
hero member
Activity: 2758
Merit: 605
now the interests of the banking system including taxes, management costs, cost of money are practically zero or even negative, instead the interests of the various sites defi in rare cases can even reach more than 100% so there is no struggle, competition, platforms defi win over traditional banks and more and more users choose defi as their first investment resource
hero member
Activity: 2408
Merit: 693
Undeads.com - P2E Runner Game
Defi are very vulnerable as it is, there are too many hacked cases surrounding the defi platform, the banking sector is a very strong place and has less risk as it is with the defi platform,  before they can even dream of taking over the banking system they may have to work seriously on the weak security issues with them, people needs to know their funds are well properly protected, perhaps in the future when defi are more secured it is possible.
legendary
Activity: 3108
Merit: 1351
www.Crypto.Games: Multiple coins, multiple games
DeFi and cryptocurrencies will be more seriously regulated by governments and they will face with many barriers for their growth.

DeFi projects are not like Bitcoin. Their developers are publicly known and governments can catch them if they want. Bitcoin is an anonymous Satoshi Nakamoto that makes it different.

If governments can force Binance to do KYC on all customers, they can do the same or more serious things on DeFi projects. The latest KYC updates on Binance is a new warning that exchange wallet is not the safe wallet to use.

I don't like Binance with that update because they don't give customers time to withdraw money if they don't want to complete KYC. What do Binance think when they allow withdrawal but don't allow to cancel current orders? It's very shady rule.

Regulations cannot be enforced on a truly-decentralized "De-Fi" platform. That's because everything relies on a distributed blockchain ledger instead of a central server. But we all know most (if not all) "De-Fi" platforms are not as decentralized as they claim to be. After all, most "De-Fi" platforms depend on centralized infrastructure (like centralized hosting, among many other things). If this keeps up, "De-Fi" might never replace banks in the future.

One thing for sure is that "De-Fi" is subject to the underlying Blockchain network's performance. A blockchain with low transaction capacity (like Ethereum) will raise fees and increase wait times to everyday people. "De-Fi" will not be able to compete with banks this way, since only the wealthy will be able to participate in the system. Fortunately, scaling technologies are being developed to help remediate the situation. Since "De-Fi" is still in its very beginnings, we're going to have to have some time until it matures enough to compete with mainstream banks. With how everything's been going so far, it seems that both "De-Fi" and banks will be here to stay for a very long time. Just my opinion Smiley
full member
Activity: 398
Merit: 100
I saw many De-Fi failed already to know it will never stoop up the level of banks. Most banks have the backup of government so even if something goes wrong, they could all way has some relief package to help the market back to normal because the whole market, loans and borrows depend on it.
full member
Activity: 672
Merit: 100
No one will be able to replace a bank as long as the main transaction is a Physical currency. De-fi is a form of blockchain-based finance that does not rely on central financial intermediaries such as brokers, exchanges, or banks to offer traditional financial instruments, and instead uses smart contracts on the blockchain, the most common being Ethereum. So basically De-fi is still a crypto product based on digital assets unlike banks that have physical assets.
jr. member
Activity: 840
Merit: 6
Banks will adopt DeFi if it's secure and offers benefits over the current system, which it does. Flare and NEAR are contenders for this new financial system.
hero member
Activity: 2758
Merit: 595
https://www.betcoin.ag
Banks will adopt DeFi if it's on a secure platform that can scale, like Flare or NEAR.

This is what we have been seeing already like the Nexo and Blockfi. Although they are using cryptocurrency, this is CEFI which is basically a registered finance company. Many will still prefer to trust these type of companies because they feel safe in case of hacks like what happened to Polynetwork which if the hacker was just not traced and identified, he wouldn't be sending back the stolen funds.

With registered companies performing Cefi, they have safeguards of funds and insurances too which banks could be on way to develop their own to find relevance in this recent change in the financial industry.
jr. member
Activity: 840
Merit: 6
Banks will adopt DeFi if it's on a secure platform that can scale, like Flare or NEAR.
full member
Activity: 821
Merit: 100
Volare.network
no, as long as bad projects still get a place in the crypto space. Defi will not be able to replace the Bank. everyone would not be able to put their trust in such a project. so it is still safer to use a centralized system that is guaranteed by the government even though it does not have freedom. the defi sensation won't last long as many defi projects commit scams.
full member
Activity: 742
Merit: 102
Second Live
This is not considered a competition, I realize that between traditional finance and cypto there will need to be consensus to have a common solution. Defi is very good, but we only look at the good side of it is not enough, the current life needs more than that.
legendary
Activity: 2016
Merit: 1313
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. Smiley
I think its too early to tell cause there are still many who patronized bank and only those who are into crypto are using defi products. In terms of rate there is no doubt defi is the winner however, people are skeptical and probably looking into the legality of those projects. We all knew that defi runs on a decentralized ecosystem where people are not used to it.
full member
Activity: 1829
Merit: 134
Moderator
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. Smiley
I think no and if there is chance it's need really long time, The Blockchain itself it's already threat for the bank in the first place and now DeFi it's with more complex finance process integrated with Blockchain but still bank have more advantages because it's backed by gov and many other big party beside that people still prefer more safe system (In case any thief, fraud, etc) Bank still can handle it much better in term of refund or reporting to the police while Decentralized System like DeFi it's little bit hard, It's my personal experience when i report to the police for my case it's little bit complicated for Crypto to handle by them (Third world Country), Here https://bitcointalksearch.org/topic/m.53734483.
legendary
Activity: 1932
Merit: 1273
"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.
Well, scalability is one of many important things that need to be addressed, but as you said it won't solely depend on it. Though fixing the scalability issue is one step forward, but defi needs more than that to truly compete with banks.

Its been in the cryptocurrencies spaces that blockchain and defi have become a buzzword. Like some people lured and became a maximalist that think cryptocurrencies will replace fiat, so does with defi that will replace banks. It's not the matter of bank or defi, but defi and bank will/could coexists with each other. Don't get me wrong though, cryptocurrencies give us the possibility we can't imagine, but the world needs to comply with the regulatory issue.
hero member
Activity: 1666
Merit: 792
DeFi and cryptocurrencies will be more seriously regulated by governments and they will face with many barriers for their growth.

DeFi projects are not like Bitcoin. Their developers are publicly known and governments can catch them if they want. Bitcoin is an anonymous Satoshi Nakamoto that makes it different.

If governments can force Binance to do KYC on all customers, they can do the same or more serious things on DeFi projects. The latest KYC updates on Binance is a new warning that exchange wallet is not the safe wallet to use.

I don't like Binance with that update because they don't give customers time to withdraw money if they don't want to complete KYC. What do Binance think when they allow withdrawal but don't allow to cancel current orders? It's very shady rule.
hero member
Activity: 2534
Merit: 824
Nah, it's too far fetch and I don't think it won't happen in the future. I don't see banks seeing it as a threat though, and maybe they are going to take advantage of it as well, to lure people into their banks. That's how these banks works for centuries. "If they can't beat them, join them attitude".

De-Fi, can exist with banks too, so there will be no problem as well. Maybe in the future, there will be De-fi 2.0 so still a win-win for us and the banks as the money keeps on flowing.
legendary
Activity: 3010
Merit: 1100
Leading Crypto Sports Betting & Casino Platform
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. Smiley

No even we count for decades. The banking system is so huge and will evolve more while in progress. Big individuals, business owners, big people, downed to a regular person will still prefer a centralized system because of safety, assurance, and being insured in case of a fu*ked up.

But honestly, I want to see a full decentralized system but already accept the reality that it won't happen even by less chance.

Rather than replacing banks, why not hope that they will exist at the same time, take advantage of them and enjoy both.

i also don't think that we will see this happen in our lifetime. the traditional banking system has been established for decades and decades and replacing them with the new technology is very far from happening, as of this moment. even now, DeFi system is showing vulnerability to outside attacks. so it is quite difficult to sell the DeFi system to ordinary users. maybe, right now, some are enjoying the benefits of DeFi but the security alone, it can't guarantee its users. just be grateful that people can enjoy the DeFi market along with the traditional system. so it is their choice how they can grow their funds via these options.
legendary
Activity: 3122
Merit: 1398
For support ➡️ help.bc.game
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. Smiley

No even we count for decades. The banking system is so huge and will evolve more while in progress. Big individuals, business owners, big people, downed to a regular person will still prefer a centralized system because of safety, assurance, and being insured in case of a fu*ked up.

But honestly, I want to see a full decentralized system but already accept the reality that it won't happen even by less chance.

Rather than replacing banks, why not hope that they will exist at the same time, take advantage of them and enjoy both.
legendary
Activity: 3108
Merit: 1351
www.Crypto.Games: Multiple coins, multiple games
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. Smiley
Jump to: