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Bitcoin Vs DeFi
Greetings to all the friends of this Leo Finance community, today I want to share the topic “Bitcoin Vs DeFi”.
Last year was positive for cryptocurrencies, Bitcoin as the main cryptocurrency had a rise in its price, as well as the largest crypto house such as Coinbase, goes public. But a new investment ecosystem also appeared, the so-called DeFi or Decentralized Finance. Now, what will happen this year 2022?
Many experts believe that other cryptocurrencies with lower value will come, to become the new cryptocurrencies of the future, thus overturning the hegemony of Bitcoin. Because Bitcoin has been expected, but has not been able to solve the problems of smart contracts, as well as the lack of intermediaries in crypto funds, in other words, what the world has been waiting for a long time, DeFi.
New Blockchains have been developing that have greater potential than the Bitcoin network, especially when we talk about Decentralized Finance (DeFi). For example, the Avalanche network is made up of three networks, where they give the user a better opportunity to create NFT, Token and other cryptographic assets through Smart Contracts and maintaining decentralization, that is, Decentralized Finance.
Taking into account, that blockchain like Avalanche improves the scalability and speed that other similar blockchains can have. So we can say that there are other blockchains, which have their cryptocurrencies with greater potential in these operations such as the creation of smart contracts and maintaining decentralization.
The web3 that is a technological trend, where DeFi is an essential part of this project, where this movement wants to create a decentralized and free internet and at the same time includes cryptographic tokens and NFT. We have to wait and see what happens with this initiative.
What is true, that great experts in cryptocurrencies see the fall of Bitcoin and the rises of Alcoin. They believe that Bitcoin does not have a fundamental value of use in the real world, not other cryptocurrencies where they do have a utility in the real world, including the blockchain where these cryptocurrencies are used.
This year 2022, it is essential to see the growth of new platforms and cryptocurrencies where they will give everything to become the new queens of cryptocurrencies. But problems will also appear that must be escalated.
We have the case of financial regulation, where traditional banking and financial regulators go to seek regulation of this ecosystem of cryptocurrencies. Several countries, including the United States, show great interest in regulating this ecosystem, but we have to wait to what extent regulation is necessary to maintain a healthy and decentralized economy.
The Decentralized Finance ecosystem plays a very important role in the crypto world and I think it will be one of the dominant and most important financial ecosystems in the future.
I think I'll stand with DeFi.
Decentralized finance has come to solve some basic problems associated with some level of finance.
That's how it is