Can DeFi Democratize Capitalism and Overcome Traditional Finance?

GameStop’s drama is finished, yet it might flag enormous changes ahead for the economics. Here’s the reason why some financial experts think DeFi will take over conventional finance.

Back in 2008, a relief fund in the name of a bank bailout was established to stabilize the currency. Due to the financial crisis, the US government bought a lot of non-profitable toxic products and assets that were worth billions of dollars. This whole effort was a failed attempt to recover the financial condition and to prevent an economic meltdown. Almost $700 billion were fixed for the Emergency Economic Stabilization Act. 

At the beginning of this year, Melvin Capital an investment firm of New York City placed a bet on the downfall of a game retailer known as GameStop. And to Melvin’s surprise, the two small firms joined hands of the partnership. Amber Ghaddar, the co-founder of AllianceBlock, said in an interview with the Forkast News that, it is a prime example of a power shift. Here the small firms came and bailed themselves out. She told the reporter that this is exactly what government should have done.

According to Ghaddar, the shift in the favor of small investors and the huge losses for low traders like Melvin is because of the rising drift towards cryptocurrency and blockchain. The flattening of the financial system is because it is not being regulated only by the institutions or investors.

DeFi’s Growth is Inevitable

Ghaddar predicted that in the coming years, DeFi will take over traditional finance. He said that it is a beautiful concept if you understand its philosophical perspective. He also stated that the only thing which is holding the world together is the dominance of the USD. And as soon as the trust in USD breaks, the currency will collapse too. Therefore it is essential to invest in something that is not controlled by USD and the government.

By adding light to the financial condition of the 20th century, he pointed that we all are living in an abnormal economic world, where only in one year the Fed has printed 40 percent of the total existing dollars. The former banker Ghaddar believes that DeFi will eventually replace traditional methods of finance.

Leave a Reply

Your email address will not be published.

Related

FINCI Helps Open New Market for Ripple

A New Partnership Ripple looks to expand its reach by teaming up with Lithuanian company FINCI. Ripple will make available RippleNet’s ODL services that use XRP to link two currencies, which reduces the cost of operations and speeds up transactions compared to traditional ways. The collaboration rests upon the use of RippleNet’s international payment network […]

ECB’s President, Christine Lagarde, Says Crypto Assets Have No Worth

In an interview, Christine Lagarde, the head of the European Central Bank, made it quite plain where she stands concerning the value of digital assets. Head Of ECB Label Cryptos As Worthless According to a survey by Politico, the head of the ECB noted her position on crypto. The ECB head stated that digital assets […]

UK Regulators are Investigating Terra’s Fiasco and Considering Crypto Rules

UK cryptocurrency market regulators are currently investigating Terra’s plunge. It began amid the recent cryptocurrency market massacre. The leading cryptocurrency in the market, BTC, fell as low as $26,000 during the market downturn. At the same time, Terra fell by about 100%. Terra’s Meltdown Under Investigation as UK regulators Consider New Crypto Rules While regulators […]

FTX Launches Stock And ETF Trading Option In The United States 

A prominent cryptocurrency exchange, FTX, is getting into the stock trading business. Soon, its users will be able to trade equities and exchange-traded funds on the platform.  Only A Few Users In The United States To Enjoy The Service  The Wall Street Journal reports that the firm Sam Bankman-Fried helped establish and serve as its […]

Major Australian Bank Shelves Crypto Launch Plan

CBA’s Crypto App Plan As previously mentioned last year, Australia’s biggest bank disclosed plans to let its users carry out crypto-related transactions on its app.  It has been taking its plan to develop the project but as not stated a particular time it will finally launch the project to the public. It also has plans […]