Role? What do we mean by the role of cryptocurrency in the Defi world? The question about how cryptocurrency differs from Defi might pop up but I'm just going to dive a little on what all this actually means and also our topic for today which is the role of cryptocurrency in the development or Growth of DEFI.
Crypto as we know it is a subsection under Decentralised Finance. Crypto is like a type of digital asset that takes care of financial transactions on decentralised finance and while decentralised finance encompasses a lot of things, we also know that crypto is an important part of Decentralised finance.
Cryptocurrency has been the major trigger for why many are beginning or have started hopping on the idea of decentralised finance. Even though cryptocurrency is a subsection in this space, we know that crypto has been the major reason why many hop on the trend and from there they learn more about the other usefulness of Decentralised finance as we know it.
The promise Decentralised finance gave is that there was no centralised community or authority that can control their actions or operations. To some extent I believe decentralised finance has kept to this promise but currently I am not sure whether they will continue to keep to the promise as more and more outside pressure keeps hitting it in a way they can regulate crypto itself.
I believe when crypto is regulated, it will definitely become something controlled by a centralised party or organisations which will definitely downgrade the worth of crypto and what it all stands for, which is decentralisation, the incapability to be controlled by a centralised organisation.
All things equal, my focus here is the role of crypto in all this drama in the financial system and I believe you will agree with me that the major reason people are keying into the idea of decentralisation is because of the effect of Cryptocurrency in the financial world. I can boldly say crypto is the most striving in all the subsections of Decentralised Finance.
There is no doubt that decentralisation has brought many advantages to the financial world and system ranging from the low fees for transactions made to the high interest rate on investment in the blockchain. A good example of this is the low fees on transactions on hive and also the high interest rate in investing the HBD savings on hive. Quite juicy right? Well, yea that's one of many advantages of Defi.
What are your thoughts on the role of cryptocurrency in Defi growth or adoption.
I would love to engage with you all on what your own idea is on this topic.