Bitcoin Forum

Ever since COVID-19 took the world by storm, people have been resorting to the world of "Decentralized Finance" (De-Fi). Ethereum-based smart contracts provide many services known in the traditional banking industry such as lending and borrowing. There's been a boom in "De-Fi" tokens over the past months as the mainstream economy loses traction.

If the current monetary system collapses in its entirety, people will dive in the decentralized economy like never before. It seems that COVID-19 is accelerating adoption of decentralized cryptocurrencies as we speak. The longer the outbreak takes to disappear, the better it'll be for the growth of "Decentralized Finance". I've seen many people talking about ETH's several "De-Fi" platforms, bringing some hype to the industry. Compound tokens (COMP), and even DAI have increased in popularity in such a short amount of time.

Do you think that COVID-19 will become extremely beneficial to the decentralized economy in the long term? Is "De-Fi" way overhyped these days? What will happen with crypto once COVID-19 comes to an end? Your input will be greatly appreciated. :)

I think defi has a yet to be fixed flaw in that it requires someone with high liquidity assets to be put up as collateral. You can't yet, even though it'd be more beneficial to, take a loan out on less collatoralised debt such as stocks afaik and you calso can't do it with real estate (I.e with a 30% deposit so you still have to 150% collateral at start).

Defi is good for releasing $ from crypto and may evolve to add better options for non smart coins like btc (with htlcs or something) but for now I'm a but skeptical as to the uses of the current stable coins. I haven't used compound but I had to convert 1300 dai before and found I could get 1320 usdc on coinbase for it which I think is a bit of a problem (but that could just be me, it's like giving a euro of change instead of a pound imo though)...

It looks like. Its just for traders now, if it expands from that then it might be good.

@Abiky I haven’t seen much demand for these De-FI tokens, and one possible reason that I can cite is that they’re not as popular as Bitcoin is among the masses. Furthermore @jackg has also put up a valid point that these tokens maybe popular among the traders only, and hence the masses have ignored them. Lastly due to Covid people’s interest in bitcoins has spiked upwards, and I believe that this spiked interest shall further fuel the adoption rate in bitcoins in the long run.

Source:

https://cointelegraph.com/news/interest-in-bitcoin-spikes-worldwide-during-covid-19-crisis

https://cointelegraph.com/news/covid-19-could-accelerate-crypto-adoption

In the long-term idea, it's definitely worth the application of this kind of technology. It's important to make those things to prevent a lot of things and it gives a lot of benefits. It could lead to better applications like

• Cashless Payments
• Lending
• Tokenizations
• Decentralized Exchanges
• No financial Censorship

There is a lot more to benefit and it's a great start for us as a society to bring it to life.

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Reference: https://www.mycryptopedia.com/what-are-decentralized-finance-defi-applications/

To add Ponzi scheme has of last switched to crytocurrency
With
+FORSAGE
+ Ethereum million and more.
The pandemic has to end soon -if there is anything like the end of the pandemic-  even if you think it has been beneficial for us, we can't depend on bad omen for adoption. Bitcoin ATM is trend even in countries like Nigeria I think this period-lock down- has given people more time to explore. I would not glorify the pandemic because nation post pandemic operations will be to stabilize there economy -might not be done immediately but they can-
Am excited about interest in cryptocurrency in the place I am from- by teenagers to the elderly- adoption not based on a virus or bad situation but adoption amongst generations,

Not really, there's just been a bunch of hype around DeFi recently. From a fundamental perspective, most of that hype is unjustified. It's just part of a larger (temporary) altcoin bull cycle.


When? How? :D


When the economy is firmly in recovery mode (like mid-2009) I expect risk assets, including crypto, to perform really well. In the meantime, there may be a lot of chopping and turbulence in the market.

I don't think so. Defi is just a new trend as the trend was hot and we will make a lot of money at this time. But when the pandemic is over, the whales will sell off the tokens again and return to invest in the stocks of large businesses. Remember, the crypto market is just a collection of lots of junk organizations and it can crash at any time. so wise people like whales will never invest in any system at all. when they make enough money, they will out and from there the trend will disappear, which is how the crypto market has run over the years.

I think it accelerate, but even prior the the pandemic, there's already a hype of this whole Defi.


I don't think that the monetary system will collapse, unless we are really in a war wherein, everything stood still. Right now the economy is already moving, although there is risk involved because of the pandemic.


For me it's just another overhype thingy, similar to what we have witnessed during the ICO craze. Last year we have the IEO, so it looks like the pattern will continue and there could be more crypto ideas similar to ICO/IEO/Defi in the next couple of years. But they are going to be hype until there's a new idea that will turn the crypto market again.

DeFi is now a trend because of many projects with this idea, will this overhype? If the project is better I think it will support it and some have had success with DeFi that they have implemented in its products.
ICO / IEO / Defi maybe in the future there is something better than this idea, cryptocurrency always brings a better idea for the future, but sometimes it likes to be used by scamer so that makes this idea no longer bright if it's dirtied by scamer.

I haven't used any of these De-Fis but I think they're becoming pretty good despite the pandemic. But I don't think that the current fiat system we have is likely to collapse. And what most probably expected during this pandemic is that there will be a collapsing for the crypto market.

Then, the opposite happened. The crypto market became better and looking stable. And once this pandemic ends, I don't think that there will be a difference from what we are with today and once it ends.

my response, decentralized finance or defi this year is the subject of discussion among the blockchain and crypto activists of the world. for me, defi is now starting to be pretty good because the ecosystem continues to grow well. Even though the community still lacks access to financial services, various obstacles I see in the crypt media. Hopefully in the future it will be good again.?

Do you have I suppose some numbers to back these ridiculous claims, right?
I'm pretty sure millions of unemployed people have rushed into this De-Fi...because...why should they in the first place?


We would be all f*** , de-fi or not, if the economy collapses nobody is going to give a damn about cryptos, tokens, cryptokitties or any other shit.
You have seen this with your own eyes when the pandemic started, the crypto world went to a standstill as it would have hit a wall.

No! Covid-19 is destroying everything related to the economy, Everything!
Totally!

Let's not get ahead of ourselves. Defi might have seen some increases but we are talking about from a very very tiny minuscule number to a tiny number, that's it. It is nowhere near the level of "people all will move to defi for sure" levels, hell bitcoin is not there and bitcoin is 100000x more known. That is why de-fi is a future prospect in the world of finances and that is why we shouldn't really throw it out of hand neither but we shouldn't really carry out that bad neither.

So all in all I would say covid-19 played a role for it to get a bit more known in the world of crypto and people are a bit more known and that is the important part for de-fi for now, we can't rush these things that means we should probably focus on slow and steady increases that eventually leads to something.

well remeber at start wen all currcnices went down drain tey recocovered but still not 100%  Decentralized  because tradtional services effect tem lots

This covid-19 has proven to be a humanitarian crisis and tragedy with dire economic consequences. Unprecedented declines in global trade and travel along with an ordered lockdown of a large proportion of the global workforce have led to drastic decreases in productivity, with uncertainty reigning supreme in markets.
In these tough times, the centralized economic processes have been heavily tested, and the cracks in these systems have become apparent.

Fraught with intermediaries and single points of failure, these systems aren’t structurally equipped to deal with crises. It is in light of these weaknesses that we must turn to the incorporation of distributed and decentralized systems and technologies into current systems and move towards a more decentralized economy.

1.The current fiat monetary system won't be destroyed anytime soon.
2.Decentralized finance is a buzz term,just like blockchain technology,smart contracts and Dapps.
I won't be surprised if the De-Fi projects turn out to be the ICOs of 2020-a bunch of scams.
We all remember how cool and popular ICOs were in 2017.How the initial coin offerings are gone.
We can't automate lending and borrowing.If it was so easy to automate lending and borrowing,all the banks would be 100% online,without any bank clerks and offices.

I think COVID-19 has resulted to the growth of the crypto market, we can tell by its numbers, if we are affected with the pandemic, the market could have collapse just like what happen to stocks, but it does not happen, instead, bitcoin and the crypto market is quite stable now.

It's hard to guess but I like give mine, I think there might be surprise this year which I think good for the market, a bullish market might come although majority would not expect that to happen but crypto market is just full or surprise, betting against the majority works here.

whereas de fi project has always been there and there are many types, but it is only now that the concept and its use have seen since the economy has weakened and the platform that provides de fi will be looked at, the opportunity was deliberately utilized by several parties and then hype for several new and old projects .
seems to have been successful enough to revive the crypto market, which is slowly getting better.

This is absolutely misleading, DeFi isn't a competitor of traditional finance, all it does is that it allows you to take collaterized loans or flash loans (loans that are instantly returned back). You can't take a loan to start a business, you can't take mortgage, you can't take a student loan, you can't even ask for a small emergency loan. In traditional finance, you can even just show you id and get a small personal loan from your bank, which will never be possible with Ethereum, because it's trivial to show fake KYC documents.

I've heard that term "de-fi" before, but I can't say I know much about what it means, and I'll have to school myself.

But even without knowing what that is exactly, as far as the topic of this thread goes I don't think COVID-19 is having much to do with decentralized finance, either with those tokens or crypto in general.  There's been less use of cash because of fear of handling money that's potentially contaminated, but nobody I know IRL is using crypto any more than they were prior to the outbreak--and I don't see why it should be that way in any case.

Interesting.  And you might be right, since I'm pretty sure people are looking for the next ICO-thing now that ICOs themselves have turned out to be all scams or worthless projects.  That'll never end until people realize they're not going to get rich by doing nothing.

Crypto in general did see an increasing number of people dealing with it, I do enjoy that fact because it has always been something that I cared about, the price could go up or down and that is fine, but the number of people dealing with crypto should always go up in my book. That is why I think this pandemic was good on crypto, overall it was a horrible thing and hundreds of thousands of people died, I would rather have those people back instead of crypto going up any day of the week.

However if there is at least one good in it, we should take a look at the silver lining as something we can't change and have to accept. Did this affected de-fi? Probably, but it affected all crypto stuff so it is not really that shocking that one part of it got some attention as well.

Does not bring any advantage COVID-19 for decentralized economy if in the long run, because COVID-19 if it still exists in the long run
will have a negative effect on everything. In my opinion, absolutely overhype right now is decentralized finance, and this is not something
good. Has no effect on cryptocurrency once COVID-19 will end soon, although in a few months the vaccine was finally found and COVID-19
ended. That will not affect cryptocurrency, now crypto is starting to rise in popularity and of course the price is slowly rising too, despite the
spread COVID-19 is still happening.

In the future, I think we'll see more and more asset tokenization. That will be the basis for liquid secured loan markets. This includes real property mortgages, auto loans, etc.

I think once we have more robust decentralized/digital ID protocols and reputation-based systems, we'll also see more integration of unsecured credit into DeFi protocols.

The big problem for now, besides volatility and the problems of DAI-like stablecoins, is that so much money is going to be lost to bad code and unreliable smart contracts. This stuff is nowhere near prime time. So when I talk about this stuff, I'm talking long term, like decades from now. And that's if this all isn't just empty hype and the whole sector doesn't fizzle out.

You don't have to know it in detail, because the rest of the market will play a role in it. My friend tries to buy ico on a new coin which of course uses de-fi, and the coin rises very quickly in a short time and almost makes 10x the price of ico.
sounds like hype but that's the truth
maybe soon we will see a lot of de-fi scam projects.
it won't take long.

DeFi is a smart contract as real proof of the application of blockchain technology and other accompanying techniques. However, because this is still in its very initial form, it is possible to make mistakes in implementing the program code, so that public trust must be maintained. this is a common problem of its application, especially if on a large scale. ISO standardization is needed so that its smoothness is guaranteed.

More like "if" we have decentralized identities, because there's still nothing even close to them. When it's trivial to obtain KYC documents and other personal data, or use neural networks to create fake one, you can't make a system that verifies identities without third parties. Plus this DeFi acts on a global scale, so a person from Canada can get scammed by someone from Bangladesh and have zero chance of prosecuting them.

Probably the current pandemic conditions are accelerating most people toward adopting cryptos and thinking about having financial commitments within themselves rather than depending on government nor corporate. But, I do see people one day or other, will start realizing the benefits of not depending on centralized things for their finance related needs and surprisingly that started happening in real world big thanks to covid19 pandemic and slow economic conditions everywhere.

I mean, it has to happen slowly over the time but due to pandemic things, it is already started happening in better pace.


I think decentralized fiance related services will persist by considering the continents, it can provide to common people; there cannot be big reasons for people to get back to centralized things. Once people realize the big benefits of decentralization then they will never stop using it, I am very much sure :D.

COVID-19 has had a small effect on the crypto market to be honest. If the effect was huge, we probably would have witnessed a huge bull run by major cryptocurrencies thanks to an influx of new investors from around the world, but that clearly isn't the case here.

Major cryptocurrencies like BTC have been stable for sometime now ever since the pandemic swept the world which proves my point. This is why DeFi hasn't gained much from the pandemic.

Among these cryptocurrencies, BTC is still way more popular than the others and I am expecting it to stay that way once the pandemic ends.

The effect that we are seeing here is so positive, it resulted to a good price and bitcoin was able to recover easily although early this year it was dumped when the covid-19 was announced as a pandemic.

personally, I am not expecting it result to a stable market, I was thinking it would follow with the stocks but I'm glad I was wrong and now I'm confident that bitcoin will never die as we have survive in this situation.

You're going to be amazed how the perception of people will change once they have to deal with really decentralized things.
Just how people who are not trusting their banks with their deposits are praising Zhao just when he says "Funds are SAFU" and don't even doubt him the same will happen to these. At first, it will be wow, decentralized, then it will need some sort of authority, arbitrage, then more and more, insurance, then control, then KYC and sooner or later the whole things will just have the label "decentralized", like all the "bio" products at Walmart.


I wonder what could go wrong if we all invest and expect a x10 price ROI.

I think we have a thread about this tokenization of asset, I've already read trials about tokenization, eithere China or Russia but as far as I know there have been some conflicts with tokenization coz people are still in doubt with these new kind of assets. We need probably more years to establish a well founded system that will work, plus the maturing population of the world matters. You can't convince an 80 year old to transfer his money into digital, they don't even know what twitter is.

I guess this is the assignment of the tech companies now for the future, guess they already started testing one of these, especially the digital IDs.

In next 5 to 8 years for me, it would not take a decade for us to build a system like this, especially now that we have this global dilemma.

De-Fi has been subject of discussion not only here on BTT but also on crypto blog but I'm yet to understand the usage and hopefully if it will address many problem that will pave way for more adoption. I  believe reason why it is not getting hyped is due to growing lost of interest in investing in crypto. I also don't see the correlation between the pandemic and how it can help De-Fi

For a decentralized cryptocurrency, it is not profitable to spread the coronavirus, but its consequences in the form of a global economic crisis. It is the onset of the economic crisis and the high inflation of the common currencies of states that will inevitably arouse people's interest in decentralized cryptocurrency as a financial asset that is not subject to inflation.

A lot of people speculate that the drop was caused by a major scam that took a ginormous amount of bitcoin with their scam named PlusToken nd they later dumped the coins which made the market to crash so badly while at the same time pandemic was on it's peak too so it is hard to say what exactly caused the drop but nevertheless we recovered it which means that bitcoins have finally gained the stability it was craving since it came into existence.

I don't think the economy is going to be decentralized ever because while decentralization sounds cool and offers freedom but at the same time brings a lot of problems which can be of greater threat than the benefits combined. I am not so appreciative of De-fi being so hyped although it is something to keep an eye on.

Agree. For what I know, De-Fi is just starting to blossom. Flaws will be discovered over time, just as it's the case with any emerging technology. I've seen how disruptive the space is, providing banking services to the unbanked. With no need for ID or credit verification to participate, De-Fi could allow anyone around the world to have a stake in the crypto economy. I think De-Fi is ideal for times of turmoil (like the ones we're facing right now). We might soon see a future where jobs are paid in crypto, while people put their savings on the Blockchain without the need to interact with a real bank in the mainstream world.

Of course, De-Fi is extremely hyped right now as stablecoins are getting all the attention in the crypto/Blockchain space. Coins like USDC and Tether USDT may not be perfect (as sometimes price is less than $1), but they've been able to serve their purpose most of the times. I'm concerned that USDC and USDT are being manipulated by their own issuers, as they censor certain people from getting access to their assets across the Blockchain. It greatly defeats the purpose of De-Fi, as the middleman is brought back again into the system. For De-Fi to work as intended, there needs to be a stablecoin that's completely decentralized. Luckily, we have DAI which fits the bill nicely. But being the only decentralized solution around, greatly limits one's options. I'd prefer to have many decentralized stablecoins than centralized ones on the market. Ultimately, people will decide whenever they want to keep using centralized stablecoins in De-Fi or not.

Nonetheless, COVID-19 will certainly have a positive impact on the decentralized economy in the upcoming months. The long the outbreak takes to disappear, the better it'll be for the industry in general. In these times of need, people are looking for a safe haven against traditional Fiat. As governments print money like crazy (effectively debasing the value of their own national currencies), people will rely on De-Fi to protect themselves against the dreaded inflation. With scarce cryptocurrencies like Bitcoin, Litecoin, and Maker, there's a store of value for everyone in this emerging decentralized economy. Just my opinion :)

Crypto currency have been in existence long before the pandemic.stroke the world. This market had proved it worth and almost fully adopted globally before this virus outbreak.
Covid-19 doesn't have a strong benefit for the decentralized economy and as such it's absence would not be felt, crypto is already rooted and nothing change the people's mind

Bitcoin is almost fully adopted, in fact, we even don't reach at least half of the global population who holds and knows about Bitcoin. If you could see how many countries ban crypto, definitely their people have no chance to invest Bitcoin. If we could say that the pandemic is pushing people and leaders to adopt the system, maybe but not to the point that almost all of us are in adopting this.

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The hypes cause by DeFi existence is something to help the market to be more popular and this is not connected to the pandemic, it is just like a big coincidence that DeFi had launch during this time. But can't we foresaw what it happens to the market after this crisis and to sure that there is a huge change after.

We already have DEXs and DeFis with centralized switches for letting intervene if something bad happens, and it's only a matter of time until these mechanisms are used for some exit scam or when a government tells to do so. And this whole blockchain technology thing has always been about looking cool to investors rather than actually making something that would benefit companies or users.

The decentralized economy is going to be positive during COVID-19. Although the country's economy has been affected by the virus the demand for a decentralized economy has increased significantly. The centralized economy has paved the way for the plunder of the corporate world and the exploitation of the common man So even after so many years of independence, the poor people have not seen the face of development Not only economics is responsible for this but also powerful political leaders cannot deny its responsibility However, since Bitcoin is not under anyone's control, it is moving at its specified speed.

\Actually this is wrong because this pandemic teaches people more about the advantage of cryptocurrency when the physical money has been discouraged a the infection might spread more then.
Indeed and has been proven so many times that people are in search of new financial system and they found it in cryptocurrency so basically sooner more adoption will happen.

The future of "DeFi" depends on the regulation. When the strong government (probably USA) starts getting annoyed with DeFI, we will see the crash and burn of this so-called "decentralized" system. The usage of a token doesn't mean the system is decentralized. I'd rather use the term "tokenized finance."

Covid probably influences people decision to store part of their money in crypto assets (not only DeFi) because of the "printing money" thing.

DEXs that are actually centralized and/or custodial isn't the end goal here. If I thought Binance Chain was the end of the line, I wouldn't be interested in the idea of DEXs at all.


When I say "digital ID" and "reputable-based systems" I'm not saying this is a drop-in replacement for your credit file at Equifax or your driver's license on file at the DMV. I'm also not sure that the goal is to completely remove third parties. After all, part of the value of digital ID is that you can have a third party attest to the veracity of your ID, without requiring you to reveal sensitive information at the time.

Part of the value is also that while the ID is rooted on chain, personal data is stored locally, decrypted and shared only when the user signs with his private key. So if this model of decentralized ID caught on as a way to store personal credit files, it would be superior in the sense that there does not need to be a central repository of personal data (like Equifax's database) for hackers to target.


Why does this matter? How is it any different if they use bank wires or BTC to scam?

The scenario that the economy is crash cant not happen, im my opinion. Our world is strong enough to against such a disastrous disease. There were several crises which were the same at this one but people still survived and they knew how to handle everything with thier new technologies and techniques learned over thousand of years. Humankind are smart enough to defeat almost everything which makes them fell bad

Moreover, decentralized system is currently not what the people want. Actually, only a small percentage of people understand the value of their own privacy and anonymity. In the other words, they depend on the centralized system to conrol their money and manage the economy. To them, the banking system are reliable enough so that they willing to give their personal information for a more convenient lifestyle

To me, both systems are great and they are two of the best inventions human have ever made. Despite being born recently, decentralized system has been promoted a lot and being trusted by most of cryptocurrency users. But its still a long way for it to become an important part of this world

If it's so hard to enforce the contracts, they won't be popular. And the interest rates might be huge as the result.


This is just an implementation detail of a database, but how would the ID itself work? How can you trust it, when it's possible and even easy to obtain biometric data and document scans. Maybe it could be solved with a web of trust, but that still means relying on third parties, it's just that you'll have a bigger choice of them. As the result, identity frauds will still occur.

That's certainly true, mate. Believe me, most tokens on the "De-Fi" space are entirely centralized. A good example of this are stablecoins like USDC and USDT which can be manipulated at will. There have been several cases where both stablecoins have "locked" users out of their funds by being placed on a "blacklist". This ultimately defeats the purpose of "De-Fi" as we speak. The decentralized economy will only work if people start using decentralized infrastructure such as decentralized stablecoins (DAI), decentralized exchanges (Block DX), and more. In this times of turmoil, it's imperative that people take the right decision to secure their funds against greedy banks and hostile governments by choosing the right cryptocurrencies with a focus on decentralization above anything else.

So far, Bitcoin is the most decentralized cryptocurrency in the world, enabling a truly decentralized economy in the mainstream world. In case governments decide to crack down on centralized exchanges, there will always be a "Plan B" because of the decentralized nature of Bitcoin. Since the pioneer cryptocurrency has been proven to be a good store of value (sort of), it has attracted the likes of investors, traders, and everyday people. Bitcoin is now the "Gold" of the digital era, serving as a hedge against traditional Fiat that's being debased by governments worldwide. I'd expect further growth of the decentralized economy, the longer COVID-19 takes to disappear from the face of this earth. With how bright things are looking for the crypto market right now, we can expect good things in the upcoming months. Just my opinion :)

I don't understand how that addresses the question at all.

The entire point of smart contracts is they are self-enforcing. You're either talking about a conventional scam (which has nothing to do with De-Fi) or you're talking about broken contracts, which I already addressed:



You are drastically overstating things. I am quite sure you have absolutely no experience procuring usable documents and actually thwarting identity verification systems.

First of all, stealing biometric data and verifying in a multi-tiered authentication system is not easy. That's fucking ridiculous. Usable KYC documents are also far more difficult to obtain that you are representing. There are millions of useless documents on the dark web, sure.

Your position is essentially this: "it's so easy to steal identities that we can't have identity verification systems." Don't you realize, that's an argument against all identity verification systems? It's not a valid argument to use centralized instead of decentralized systems. You haven't established why centralized systems are superior.

You can trust a decentralized system for the same reason you can trust a centralized one, because trusted third parties (like your bank) are attesting to the data. This is about who controls and stores the data.


Some degree of fraud will always occur in lending. You realize that, right? Pointing out that crime is possible isn't a legitimate argument against anything.

You know what won't occur with decentralized ID? Large scale hacks like Equifax where data on 150 million people is stolen at once.

I already mentioned reputation-based systems as another possible basis for unsecured credit. I also already said:


Nothing you're saying is an argument against decentralizing identity systems. You're only arguing against the basic idea of identity verification. That's rather futile since identity verification isn't going away.

Do you understand what you're saying? If the current financial system collapses , we will collapse with them. Decentralization is not a Golden pill for all ills.
If there is a truly global financial crisis and everything goes to the bottom , then we will go to the bottom along with the rest of the world, along with cryptocurrency, decentralisation and so on. Please don't be so limited as not to understand this I beg you.

Not just due to the current pandemic situation, I guess all unusual economic related thing will make some people to think about adopting cryptocurrencies because of its decentralized nature. I mean when you keep going on what you are getting used for years then you will ever think about trying new things. This way the current pandemic situation must be getting opportunity for many people to check and test what is crypto currencies and how decentralized economically will be helpful for them.

Whenever people do hear about collapse of some country's economy then they will go for studying what individuals need to take care of their financial thing against their country's performance in world economy. This kind of news are usually makes some people to think about adopting the decentralized to things. Similarly I believe pandemic lockdown and economic crisis made some people to study about decentralization and other crypto related things from which we can expect some people to become a permanent crypto adopter.

More and more DeFi has sprung up Connext - Compound. DeFi is easily accepted because it can be used by anyone. the conditions are only using the recommended crypto asset wallet like MetaMask. users pledge their Ether crypto assets and get DAI as loans. This DAI value is the same as $. if you want to develop it can not only be $, but can be based on ¥, , €, £ if any. so the decentralized system also has a relationship with the centralized financial system. can't stand alone.

I don't think so. Though its really a big help during this strange time, but it can never be used as mainstream economy. Because, I believe that our economy needs physical manpower and not all the people around the world have the knowledge about digital currencies and have an access to the internet and the modern technology.
In addition to that, other countries still not accepts cryptocurrencies legally.
Maybe in the future, but for now, it won't be.

It depends. If the decentralized economy becomes independent enough from the current monetary system, it's unlikely such scenario will happen. But we all know how the so-called "decentralized economy" is too tied to the centralized realm. Given that adoption for crypto is still low relative to Fiat, if the latter goes down the drain, so will the entire decentralized economy. I hope that the mainstream economy gradually recovers after the demise of COVID-19. Once this happens, it's expected that prices per each cryptocurrency on the market will rise to new ATHs. I'd imagine Bitcoin going past $20k after the world's economic recovery. Right now, it's a great safe-haven asset for times of turmoil. People have the choice to escape the negative effects of governments' constant money printing via the use of decentralized cryptocurrencies. If Bitcoin and Blockchain technology weren't invented in the first place, none of this would've been possible.

All in all, the rise of COVID-19 will prove to be more beneficial for the decentralized economy in the long run. The longer the outbreak takes to disappear from the face of the Earth, the greater cryptocurrencies and Blockchain technology will rise in popularity. We've already seen this with the "De-Fi" and stablecoins hype. Governments may be debasing Fiat currencies by printing more money than usual (especially the US). But this will lead towards a higher valuation of the crypto market as we speak. Just my thoughts ;D

But you also understand (right?) that the so - called "decentralized economy" can not exist on a global scale - because it will cause such a major confusion that we will roll ourselves back, when every small Prince had his own coins-and then it worked only because they were gold (for example) and you could believe in it.
This reminds me of the story about universal equal distribution of resources - which will only lead to the fact that you will need a huge staff of officials and a monstrous set of tools for correctly determining prices in all coins at once. No one wants to be part of a decentralized economy and still use a single currency, because then why do we need it?

BTC growth to 20K will be possible only in those conditions when the" Fiat " economy gets back on its feet and begins a long and consistent growth again. Just like that, it will not jump by 3-4 times because this requires dollars/euros and not just a desire.

This ks pretty much what I am trying to make people understand. What's the whole point of giving a loan when you have to keep such a highly liquid asset like other cryptocurrency as a collateral? Even if I am long on that cryptocurrency still there are various other options than paying a hefty interest rate. Even for a trader who does all the calculations before entering into a trade will realise that he can never be profitable with this kind of loan by his side. So technically the product of defi is somewhat flawed which means that they definitely won't stay here long.