Traditional banking is hitting the dust of late, and it won't really stop until they are all dried up in terms of customers. The feds will lose out on outrageous interest rates, the banking system won't be able to task the world in to cover those loans and keep up with their own profits. What happens when DEFI manages to hit a 30% return on stable assets yield farms? It may seem like a rather difficult reality, but no, as long as the industry stays alive, more and more projects will move towards making that a reality, all it needs is more users and that will be easy money. 10% is already fair, that's more than one can ever get from a savings account with these traditional banks, but it's sickening how people still complain when they know that this is basically free money…
A Bitcoin Backed Treasury - What Effects one should Expect?
The first way to actually meet real sustainable investment on this network is running a bitcoin backed treasury, that's Defi backed by bitcoin. Until a bitcoin backed Stablecoin is actually created, and I'm not talking wrapped BTC. A proper BTC backed Stablecoin won't be directly sharing an equal price based on a 1:1 ratio. That will cause some amount of theories on why people should care about it when it will always be valued the same as an actual bitcoin. In this case, lots of people will prefer staying on bitcoin rather than WBTC because of **"security" ** When we look at HIVE and HBD, we get the message. While hive remains free to explore Hive figures and low figures respectively, HBD which is backed by Hive, is expected to act within a certain price range in respect to its investment treasury; Hive
“DeFi is the most dangerous part of the crypto world,” said Warren. “This is where the regulation is effectively absent, and — no surprise — it’s where the scammers and the cheats and the swindlers mix among part-time investors and first-time crypto traders. In DeFi, someone can’t even tell if they’re dealing with a terrorist.”
This claims is ignoring the fact that it isn't as dangerous as CEFI. If we're being real, DEFI is largely dangerous because most of it still falls back to fiat backed assets and that, totally, placing a portion of the space in centralized risks. Until DEFI is running without Fiat backed assets, at least, without having it as the greatest fall back, then DEFI hasn't lived up to its design. HBD will not meet its full potential until Hive is unpegged from USD and pegged to BTC only. Also, BTC has to be detached from Fiat valuation for it to serve the crypto industry better, being the largest cryptocurrency by market cap and users, it is just in the right position to be the reserve asset in the treasury.
No More Death Pills
Commercial banking will not totally be out of business if they choose to embrace these changes, but it will be difficult to see that happen when they are largely controlled by centralized freaks. One other reason why commercial banks cannot hop into this field of investment is that they lack the vision to actually distribute value. The bank will never be able to pay an interest as large as 10% on investors funds, well, if they can escape the FEDS, maybe there's that possibility?
Defi will creeple Traditional Banking and its investment options as time passes. The government understands this, lots of Decentralized projects will find ways to grow community funds and the best way which I've already stated would be to have a bitcoin treasury. That doesn't necessarily have to be the only asset in the treasury, more gold class cryptocurrencies can be added to better serve the community. Being pegged to Fiat through Stablecoins dominating the markets as the day passes will slow down the process of DeFi. It is bigger and will be better once unpegged from central supply shit loads, my two cents…