DeFi VS Banks, Who will lead?
DeFi (Decentralized Finance) has grown up 16 Billion dollars in just a few months, so what does it mean for Banks and moreover you?
DeFi simply means transact of finances in a Decentralized Manner, either you want to Lend, Borrow, Or Save Money, All those activities are not taken care of by any Banks or Single Entity but Smart Contract which is prewritten & can’t be tempered.
In today's unprecedented times we are seeing a financial crisis in the economy, to regain the momentum the Govt. of the biggest economies & banks are coming forward to sustain the liquidity into the market by printing money and buying assets. The more they Print, The more Flow of money will take place in the Economy which causes Inflation in long run, We are not a saving economy anymore, the interest rates have been going down, n down, While the interest rates on loans are also getting cheaper. So ultimately savers are becoming looser.
On the other hand, DeFi is providing such a sustainable and reliable source to earn passive income without taking any risk. The interest rates in the market place are not set by any govt. or banks, it’s been adjusted by Market Demand & Supply, if there is more demand for Loans the interest rates will be higher & Vice Versa. Example: Todays the interest rates on Stable Coins are somewhere between 20-30% Annually, where banks are giving 6% PA.
The Markets Are Changing Very Fast in Today's World, So Does The Ease Of Doing Businesses Globally & So Does The Managing Finances.
Its Time To Take Back Control, Its Time To Become Your Own Bank.