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Hi everybody,

Bitcoin’s price has been hovering around the range of US$8,500 to US$10,000+. DeFi tokens, on the other hand, have surpassed Bitcoin massively.
What’s interesting to note is that the more DeFi tokens gain upward momentum, the more Bitcoin could possibly be boosted when DeFi undergoes a correction.

With the rise of DeFi, this brings us to ask: can Bitcoin be boosted by DeFi?

Read on here: Is DeFi benefiting Bitcoin? (https://bit.ly/2SLysQP) and let us know your thoughts on this.

Thanks,
Karl
Bitcasino.io

I think, any crypto related project that attracts more people befenits Bitcoin. Just like Bitcoin benefits the other crypto projects. That doesn't necessarily mean that DeFi is a good idea or a solid project.

Am I reading right here? We are in the $11300+ level right now. So the range you are referring here was couple of months back? But on the note that DeFi is benefiting btc, I believe yes. Because those noncrypto users that got attracted to DeFi because of the hype, will eventually learn about bitcoin. And from that situation, they can compare the difference of btc and defi. And I think some of them will appreciate the benefits that btc will bring to them.

I was going to enter into the discussion, but I put the OP on ignore because of that stupid great image. What on earth was the point of including that to waste everybody's time and bandwidth?

with the arrival of defi it does not affect bitcoin at all and bitcoin will still be able to run without the influence of defi, currently bitcoin has shown $ 11K+ and will continue to move up even though there may be defi that surpass bitcoin but bitcoin will still be an idol to keep looking for . conclusion without any defi bitcoin can still move well.

We may have different opinion on this but I think the there's a pro's and cons regarding on the Defi discussion and what is the effect on bitcoins.

Provably there is since for sure people will grab some Bitcoin first in exchange to Defi tokens available on some top tier exchange and medium tier ones, for this it will possibly create a demand for Bitcoin. Also the somehow bad effect I see from it is the scammers joining the DEFI scene since they might create a market confusion if they turn scam and dump their accumulated bitcoins.

OP should first know that it is not the price of a coin that matters, it is the marketcap, why are the DeFi projects that surpass bitcoin in price not gotten above bitcoin in ranking. DeFi never at all surpass bitcoin and they all have a long way to go, summing up the whole DeFi project is nothing before bitcoin.

Let me explain this for you to know better, each projects on DeFi counts on ether price, I mean the more investors are investing on DeFi projects, the more will the price of ether is increasing. Still, ether is nothing before bitcoin not to mention the whole DeFi.

There is a DeFi project called wBTC, in which investors can invest on and make profit, the more investors invest on wBTC, the more the price of bitcoin will increase and the more the price of ether will increase, but the increase in price of bitcoin is so small because wBTC contributes to less than 1% of bitcoin marketcap. Most DeFi are built on ethereum network, which makes it contributing to Ether price and marketcap itself. Some are built on tron network but not as strong as the ones of ethereum platform in reflect to marketcap.

Once a crypto bubble pops and you're part of it, two things happen most of the time: you either sell in complete sadness and never go back to crypto again, or you repeat the same mistake until you finally realise you would've been so much better off with Bitcoin.

So yeah, it does tend to benefit Bitcoin especially as people quit DeFi. Besides verified fiat-crypto exchanges, the best and quickest way to get out of a hype is by exchanging the said coins into other cryptocurrencies - and most money goes straight back into BTC and ETH. The more altcoins lose power, the more power Bitcoin gains.

In my opinion yes. Bitcoin is the primary cryptocurrency and all new investors that will enter DeFi will surely buy first bitcoin before they start buying DeFi token that preferred. The majority of crypto user preferred Bitcoin as there main coin in there portfolio and most of the investors diversify there investment. If many new traders will surge to buy DeFi token,  I'm pretty sure that they will buy BTC too to add on there portfolio.

BTC is just like Gold in precious metal. If a trader will buy silver, they will buy too Gold once they have enough money because human is always looking for more much better things.

The most money will go back to bitcoin only, the reason is that if you invest on DeFi project on ethereum network, the marketcap of ether will increase, while the price also will increase (it is like people are still buying ether but although it is DeFi coins). If investors leave the DeFI project by withdrawing there money, it means the price of ether will fall because most of the money will go to bitcoin and ether, but more money if withdrawn from ethereum platform (DeFi projects) than the ones sent to ether which will make the price of ether to fall.

It does. We can compare this scene to the ICO bubble and that made bitcoin pump as high as it did and everyone will agree that the ICO market helped bitcoin to pump during that time. So does this defi market also giving benefits to bitcoin but as for this defi market, this can't stand alone. Without bitcoin, it can't last but bitcoin even without this crowdfunding, defi market, and any other sort of the same project, it can stand on its own and we all know about it.

It did not benefit Bitcoin (blockchain) but it contributed to bitcoin (BTC) somehow. I guess there are plenty of people who bought more BTC and locked it up or tokenized it to get more rewards from these DeFi projects.

Or maybe it does benefit Bitcoin a little? More BTC lock up in DeFi projects would mean less BTC in circulation which leads to less transaction and less network congestion ;D

     People will always have contrasting opinions about this since if we think about it, defi can both be a pretty good thing or a bad thing for the crypto currency industry and not just to bitcoin itself. At the end, what it comes down to is the different types of perspective that everyone has and how the majority would act on any thing related. Just as how things has been happening in the past years

The 2018 cryptocurrency crash put the market in the disappointment mood. Bitcoin price have experienced downtrend for a long time. In the ongoing DeFi publicity we've encountered some advantages and disadvantages but somehow the whole market back into mainstream as before. People back into the crypto market that is the primary concern how DeFi publicity benefiting Bitcoin.

Your argument doesn't make sense. Money going out of DeFi and into Ethereum/Bitcoin means DeFi's market cap should theoretically be reduced while Ethereum/Bitcoin's should increase. Besides the fact that most DeFi tokens are based on Ehereum's blockchain, I don't think there is any other correlation between the two.

DeFi can benefit bitcoin or harm bitcoin. It depends.

- DeFi is a hype scam. People who lost money with their investment in DeFi will feel fear of crypto after that. Especially if they are newbies. The scam and their easy losses can force them keep investment distancing with bitcoin and crypto (not social distancing, LOL).

- DeFi can benefit bitcoin. People who don't lose money in DeFi or luckily earn profit and exit fast enough. They see the fail of DeFi and realize how good bitcoin is. They will stay with Bitcoin. It is a side of benefit DeFi brings to Bitcoin.

For most people when reading about any crypto project they tend to find out about Bitcoin as well. So in theory it helps to know more about the whole ecosystem. Since DeFi is complex and requires study.

But as mentioned, no DeFI is built on top of Bitcoin. It does not use the same code. It is not possible to trade with Bitcoin.

The only impact is on the Fomo that people use and end up buying everything while the bubble is rising.

That's what I wanted to say. But I will add little more thing here. People who loss their money in DeFi project may move to bitcoin when they will realize it is much safer than any DeFi project. Though it won't give them much profit shortly as DeFi does. Not only profit maker moves to bitcoin from DeFi. Currently DeFi project attracting a lot of newbie in crypto world. Many of them finally showing interest in bitcoin too.

True! Defi market is full of scammers and we have seen few exit scams already where people have lost their money big time! However, there are few defi programs as well which has definitely grabbed a million eyeballs and still growing stronger. Defi can definitely boost bitcoin but indirectly. I don't see any direct benefits on bitcoin.

You meant just like ICO pumping Ethereum and I think also Bitcoin.
IMO, yes, there is a connection.
Usage.
Instead of getting merchants, we got ICO and DeFi.  ;D
They make coins to be bought in Bitcoin and Ethereum and that helps a lot to boost circulation.
Investors buying, coins pumping. DeFi projects will sell it to continue their project, coins dumping.
Somehow it makes a healthy industry. 

Level 80 advertiser :)

Thanks to smart contracts, Bitcoin has become an inseparable part of the Defi ecosystem
Online statistics can be seen here:
https://btconethereum.com/

The DeFi ecosystem has several advantages:
We can see and analyze the real trading volume of funds, and centralized exchanges are constantly deceiving us.
We don't need intermediaries to create tokens and exchange them.

Unpopular opinion. Bitcoin is benefiting DeFi sector. And not vice versa! Bitcoin is the first and only real representative of the DeFi sector, because it has certain characteristics which make it a perfect candidate to become a pillar of a new decentralized financial system. Bitcoin network is the safest one among thousands of others, not so safe networks. You can't trust a decentralized application if the network it is built on is not secure, can be rolled back, hacked or changed. Bitcoin is intentionally designed to be turing incomplete to be sure it is immune to DDOS attacks, infinite loops, etc. Bitcoin's script language is very simple and understandable, however it is still posibble to create smart contracts with it. Since it is simple and turing incomplete, contracts written with it are more robust and therefore more valuable. What is the point of turing complete smart contract if it is hard to grasp and easy to hack?

In my opinion Defi does not have a good impact and is not at all profitable for Bitcoin, because before Defi was in the world of crypto, Bitcoin has provided benefits for everyone and Bitcoin is a crypto asset that is held by many people. So I think your question here has really made me laugh and you are like a beginner asking a question about it.  ;D

I believe that in the current situation, defi tokens are similar to another new layer due to which bitcoin can rise in value. And with each new invention that will increase the value of cryptocurrencies, this will ultimately affect the price of bitcoin.
If they come up with something new next year, it will also have a positive effect on the price of bitcoin. And so with each subsequent year - bitcoin will increase more and more new qualities.

Very true but that doesn't means the benefits are always positive to the growth of the price of bitcoin. It does always increase the popularity as the new investors get to know about the coins that started it all. During the DeFi hype prior to the market crash, although bitcoin price movement was looking bullish it still couldn't be compared to the price gain of the DeFi market as it was skyrocketing.

Don't hate the technology, hate the scammers giving a bad reputation to the concept, just as they killed the concept of decentralized crowdfunding (ICO). The DeFi concept is a brilliant one, it shows exactly what bitoin is trying to achieve, just that we're more focused on the price instead utilizing the potential of the technology.

OP is seems your post is kind of late, the corrections has already occured driving all the DeFi tokens downstream and currently just bitcoin is recovering. Bitcoin has done more for the industry than DeFi did or will even do though.

Yes all altcoins are being paired with bitcoin and that is how they make the value of their coins not only the volume of the trades. As we all know if their coins could not be trade by bitcoin then that coin has no value. The coin will have value unless it will be paired to bitcoin and this is how I do believe.

Defi projects like Uniswap is one good project that could help promote bitcoin like being paired on it. If the user wishes to get bitcoin by swapping his uni tokens then for that bitcoin will be able to be benefited.

The Defi craze and the buying of new and old Defi coins has increased bitcoin and overall crypto transaction and trade volume. That could be considered a benefit.
Defi at the moment are not directly influencing bitcoin use but with the development in interchain operations, bitcoin would again rise as the prominent pair.
Bitcoin itself could evolve itself so as to boost the integration.

I wish I remember where I saw on this forum while reading on mobile, just 2 days ago was it something LoyceV said somewhere (?). About Defi and decentralization and ETH and DAO... which I actually remember quite well because it was the year I actually started coming into Bitcoin (2016). Still bright-eyed and amazed and really into decentralization movements and thinking "wow".

My humble thoughts? Defi is nothing like that.

I admit I haven't delved into Defi at all, just the occassional brushes with it in news, but if anything, Bitcoin's always benefitting Defi, not at all the other way round.

It's in the [Interviews] with Bitcointalk members (https://bitcointalk.org/index.php?topic=5262967.0) thread:

It sure looks like a chain action or reaction that happens in cryptocurrency. With DeFi, bitcoin is at the centre of attraction between DeFi and altcoins, so I think it should affect bitcoin positively. Bitcoin has not been badcin price since the DeFi hype, this means people are still investing and hodling bitcoin.

It could be yes, not just only Bitcoin and it seems Ethereum too has benefited through this Defi sector and most projects have a good impact on the entire cryptocurrency. Based on the thread of @zazad here, How many bitcoins are there in DeFi? (https://bitcointalk.org/index.php?topic=5281639.0) it shows that there's a good benefit to Bitcoin and attracts investors to get in touch with Bitcoin before investing in the Defi projects or altcoins that paired to Bitcoin.

Let see how this promising Defi sector will outperforming the Bitcoin price and surely will surge the market price. Let's do hope that the scamming incidents will lessen to this Defi project that makes the Bitcoin weakness, meant investors afraid to be a scam, every time there's news of scamming incidents, there's an impact on the Bitcoin price.

In my opinion, the beneficiary is of course Ethereum, which is what we know that the majority of DeFi projects were created using
the Ethereum network. So the Ethereum transaction fees are getting higher, because DeFi projects are getting hype. This made
a crowd on the Ethereum network, indirectly makes the price of Ethereum also increase.

But DeFi projects have also succeeded in attracting a lot of new investors into the world of cryptocurrency, and this has benefited Bitcoin too.
Because some investors who invest in DeFi projects will indirectly buy Bitcoin too, to save capital that will be used or save the profit from
DeFi projects.

[/quote]

Yup! Not precisely how I thought but essentially how I feel about it. Even the biggest names and "influencers" in the space have proven time and again that they are really only in this "decentralization" as a way to line their pockets. And no, there's nothing wrong there, but the only real movements towards open society and decentralization are the devs working quietly and cypherpunks building code. Smart contracts and defi have been around for a while and it's laughable to see them being dressed up now as Defi.

To me,DeFi tokens are kinda similar to ICO tokens(I don't know whether or not DeFi projects will become the exit scams like ICO projects).
Back in 2017,when ICO projects were exploding,the Bitcoin price reached it's absolute peak.
So,the answer is yes,DeFi projects can help for boosting the Bitcoin price,but I think that this price boost will look more like a price bubble,that will eventually burst,rather than a stable long term price increase.

I think all his projects are unique on their own part, but to that defi benefits Bitcoin yes it does, because most people nowadays go into crypto to make easy cash through defi without the knowledge of what is Bitcoin, and inturn get to notice Bitcoin which in the process getting mainstream attention.

How To Enabled Post????

It is perfectly natural to shift funds between different crypto projects.

I think DeFi's popularity and the momentary bubble are helping Bitcoin. Basically every positive piece of news and every success in the crypto market helps Bitcoin.

The DeFi market capitalization is too small.(compared to the ICO market for example)
Its collapse will not have very visible impact on the increase in the price of Bitcoin. In my opinion even more possible is that it may be quite the opposite. If there will be a flashcrash in the DeFi market, I think that Bitcoin's price will drop temporarily as well.
I think that the reaction of Bitcoin's price depends quite a lot on how quickly the situation on the DeFi market will be changing. If the drop in prices on the DeFi market will be very fast, the price of Bitcoin will also fall. If prices fall slowly, capital will also slowly move to Bitcoin and this may have a positive impact on the BTC price in the long term.

Defis are beneficial to bitcoin as they provide the inflow of money and the volume for the market, but it would be wrong to say that it has vital importance for bitcoin since the number of defi isn’t too much.

If you mean Bitcoin as a separate entity, no, DeFi does not benefit it. But if you mean crypto as a whole, then DeFi definitely benefits it

DeFi is a SCAM.  It's driving me insane after all the scams we've seen in the cryptocurrency world and people still don't understand how to spot an obvious scam.  

The only way I see this helping out bitcoin is the fact that's it's created a lot of buzz around crytpocurrency and a lot of idiots who don't know how to break down a crypto coin or token are buying in since it's returns have been so high of late.  Again, people, THIS IS A SCAM.  I would love for someone to try and refute that so I point out your ignorance and everyone else's.  Sick of this crap.

How and why did you come to this conclusion? The high returns only make it a hype, not automatically a scam. DeFi has just sparked a huge hype that doesn't make much sense, and it's the only reason it's going wrong. The fact that there are a shit ton of scammy DeFi tokens is a completely different thing.

Why DeFi Scam?
Maker, Uniswap, Compound, Synthetix, Aave, Bancor, RenVM and other well-known projects are also scam?

Over the past 11 years, Bitcoin has gone through many stages, we have seen a lot of hyips, financial pyramids, pumps and dumps, but no one calls Bitcoin a scam.

The Maker project gave for the only honest and stable stablecoin (DAI) that cannot be blocked by the owners of the smart contract.

Everyone associates Defi's ecosystem only with yield-farming projects, but have you tried reading about other projects?

I think DEFI brings money flow to the crypto market. Investors join DEFI and, after making a profit, they will continue to buy other cryptocurrencies. And Bitcoin is always the first choice, so bitcoin will increase in price.
Currently, the DEFI projects are being withdrawn and bitcoin has been above $ 10,000 for a long enough time, about 3 months, a good price for growth higher.

In any case, DeFi projects have revitalized the entire cryptocurrency market and this also has a positive effect on bitcoin and other cryptocurrencies. Bitcoin and ethereum are now slowly growing not only in price, but also in terms of capitalization. This means that DeFi projects do not divert investments to the detriment of bitcoin.

I can'r really make my mind about deFi so far. My view on deFi is a bit rusty.

I read about UniSwap a lil bit.

Here is how Binance describes UniSwap:


So it is a DeX built on top of eth. And what we can trade is, tokens.

I don't know why people making a big fuss about this like it is the next big thing. Yeah people can list their tokens on that platform without needing a permission but why would any serious company do that?

Do people really think NYSE, S&P500, DOQ etc are going to move to ETH?

That's delusional.

Well, its quite true that DeFi is setting a wonderful trend because of its value and might possibly be boosted by Bitcoin with further developments. Its will be truly benefiting for people who trusted on DeFi when it started and what more will happen if its also backed by Bitcoin.

;D
Ethereum will eat Wall Street's settlement layer
https://bankless.substack.com/p/ethereum-will-eat-wall-streets-settlement

Seriously, people do not understand all the opportunities that the Ethereum platform provides us.
https://blog.chain.link/44-ways-to-enhance-your-smart-contract-with-chainlink/

I don't think that you need to be a major global expert to understand that smart contracts and asset tokenization will be actively developing in the near future

Interesting what's gonna be happening in the next 5years? The rise of DeFi definitely give interest to some noncrypto users to take a look at crypto market. So for me, even if DeFi is considered to be the current hype, still it provides some positive effect on bitcoin. But hopefully, those investors will be smarter than what we had in ICO days. They should know better and spot fake DeFi projects.

Of course DeFi projects help raise the Bitcoin price indirectly, so I agree that DeFi does benefit Bitcoin. Because with the hype on
DeFi projects, the cryptocurrency market became crowded. But not all DeFi projects are good and profitable, so don't be surprised
that some people say that DeFi projects are scam. Therefore, always do your research before deciding to buy DeFi projects, so you
can invest in well known projects. I myself invest in LEND, COMP, LINK and UNI.

I've written about this many times before. If someone wants to invest in DeFi, then look where large investment funds invest
Andreessen Horowitz  https://a16z.com/portfolio/
Panteracapital            https://www.panteracapital.com/portfolio
Alphabit                      https://www.alphabit.fund/investments/

What do you think, will companies that manage capital from $ 0.5 billion to invest in DeFi scam or yield-farming ;D ;D

"Bitcoin is benefiting Defi" makes sense to me from all the valuable comments you have made. I have also read that the Defi are continuing the work that gave rise to Bitcoin.
Let's take a look at how WBTC works and how it is providing greater liquidity in the ethereum ecosystem, decentralized exchanges and dapps.

https://wbtc.network (https://wbtc.network)

Although I am excited about the DeFi revolution, I maintain the conviction that without Bitcoin they cannot coexist because they need to be capitalized.

you are right, every concept are benefits if they are crypto related. recently defi creat a great hype in crypto market & i think its a better for crypto world. for this hype market moving brightly.

WBTC is not the only Wrapped service

How many bitcoins are there in DeFi?
https://bitcointalk.org/index.php?topic=5281639

I see that Bitcoin is becoming a new global asset for accumulation, that is, it turns into digital gold.
Lightning Network, Omni Layer, Liquid Network are not very popular with the community. The only opportunity for trade and decentralized exchange is provided to us by the DeFi ecosystem

Bitcoin is the primary cryptocurrency and all new investors that will enter DeFi will surely buy first bitcoin before they start buying DeFi token that preferred. The majority of crypto user preferred Bitcoin as there main coin in there portfolio and most of the investors diversify there investment. If many new traders will surge to buy DeFi token,  I'm pretty sure that they will buy BTC too to add on there portfolio.

That doesn't prove anything actually.

So many big hedge funds went down to zero before. Just because they are big now doesn't mean they'll be big in the future or they always take the right steps.

They could go bankrupt by choosing the wrong investment.

Happened before many times.


https://thistimeitisdifferent.com/wp-content/uploads/2018/12/Lehman-Stock-Chart-1.png
Source: This time it is different (https://thistimeitisdifferent.com/is-deutsche-bank-next-lehman-brothers)

In fact, this does not refute anything :)
Hedge funds constantly monitor the market, diversify portfolios and have many opportunities that are not available to the average investor.
Any financial investment is associated with risk, and all risks are written in the investment agreement.
And if large hedge funds invest in DEFI projects, this tells us that DEFI projects meet high standards.

Correct me if I'm wrong but I don't see any ways that DeFi is benefiting Bitcoin at all.
Maybe awareness to the crypto in general but to Bitcoin directly, I don't think that there is any.

Only those developers and the team of the project are the ones who are benefiting in DeFi since they will just create a new project, name it into anything that they like then just put a description and that's it :D.

I have the same opinion on this. When the DeFi bubble bursts, the same thing will happen as in early 2018 after the ICO bubble burst.
Let's just hope it will have less impact and the crypto market will recover faster.
I'm not saying that all DeFi projects have no future. There are many well-prepared projects in this market.
Unfortunately, the majority will fail, which will make investors afraid to invest in cryptocurrencies again for many months.

It already did.


How do you explain Lehmann's* bakruptcy? According to your logic, the impossible has happened.

*You can replace Lehmann with any other big company that went down. It was just an example to show you how ridiculous your logic is.

I do not know whether defi has provided benefits to bitcoin, but the increase in bitcoin occurred at the same time as the hype defi, there is no coincidence but everyone has a principle to judge it with their own eyes, at least the current hype defi is not bad for bitcoin.

I don't think Defi has much effect on Bitcoin because bitcoin will continue to run. The ups and downs of bitcoin prices are influenced by investors who want to invest in bitcoin. if the price of bitcoin increases then don't mention that Defi helps because there are still many Altcoins that affect the price of Bitcoin.

Bitcoin is the most popular crypto currency and most of the altcoins  projects or defi projects token are exchanged with bitcoin.So the volume of bitcoin trading is increasing  and it is  benifiting bitcoin.So of course defi projects now attracting more and more people it is helping bitcoin to grow more.

I think one way it’ll definitely benefit bitcoin is that just like the ICO season just before the last big bull run, lots of the profits were pumped into bitcoin. Maybe that’ll happen here again, that’s my only (selfish) interest in DeFi tbh.

Any new trned which benefits crypto currency or uses blockchain as it's fundamental definitely benefits Bitcoin as it pulls more crowd into the Bitcoin investment game.
As more money gets poured in people get to know about Bitcoin more.

For those who have been in the world of cryptocurrencies for several years, the situation related to DeFi is a great opportunity to earn money - just like in the ICO bubble.
In the long run, the fact that DeFi attracts new enthusiasts will surely be beneficial for Bitcoin. However, in my opinion, education should attract attention to cryptocurrencies, not greed. Unfortunately, many new people who will invest in DeFi now, will just lose their money first and then start their education.

defi has no effect on bitcoin, bitcoin has been around long before defi existed and bitcoin is still a good way, bitcoin stands alone without depending on other people, including defi. but defi is pretty good and at least defi is not bad for bitcoin.

 not all defi tokens surpassed btc but there is only one defi token that i know that surpassed btc by price  . it didnt surpass btc massively but to be able to do that , he must beat the other stats and achievements that btc did   . your asking i defi can boost btc but you already answered your own question within your post because you said defi tokens boosted btc price but that is only what you think while we also have our own thoughts and for me i dont think there is a solid relation between defi and btc values  . i dont want to say bad comments  but defi maybe the reason for the downfall of btc and the crypto market because many defi has a failed and scam projects and this prolly give bad insights to the noobs and non open minded individuals .

My experience taught me 1 important rule: "The logic in the cryptocurrency markets works very poorly"

Even if you consider your logic, many banks in the world have gone bankrupt, but people continue to increase the volume of deposits in banks. Where is the logic here?

I have already said the most important plus of the DEFI ecosystem: you can trade Bitcoin in a decentralized manner. Other services like atomic swaps won't give you that much liquidity.

not sure that the current bitcoin price is being pushed due to the many DeFi projects, I am more sure the bitcoin price is being pushed due to the previous halving, there is nothing interesting about the DeFI system even it is not profitable in my opinion either, so even though DeFi is abandoned by many users bitcoin will remain continue to go to the next rally

As much as I support the idea of decentralized crypto, I don't really think there's a direct correlation between DeFi booming and Bitcoin price moving. Although, I'm pretty sure that if you look for the connection on purpose, you'll finds clear signs that DeFi benefits Bitcoin ;)

DeFi sounds like a sophisticated brother of ICOs (a way to drain money from investors and then perform an exit scam). The ICO craze is long gone, and pretty much everyone who is familiar with the crypto market knows how risky it is to put money in one. DeFi, however, is still something that's only gaining popularity, even though some shady things already occurred with them. DeFi sounds like something very interesting and a natural step forward after Bitcoin with its decentralization, but I wouldn't risk investing in one.
As for whether Bitcoin price can go up because of these projects, I think it can. After all, it went up a lot at the golden age of ICOs. But Ethereum will probably get more from this than Bitcoin.

By the way, I liked the article (https://bitcasino.io/blog/cryptocurrency/is-defi-benefiting-bitcoin), but I think it has a mistake:

As some of the defi ecosystem rotates around the Ethereum network, a number of people are grasping these defi applications so as to earn more bitcoin.

DeFi is a tiny drop in the ocean compared to Bitcoin. And I don't care what is DeFi's marketcap, it's just a bubble and vaporware, it will disappear just like ICO did, while Bitcoin is here to stay. If Bitcoin didn't have bull runs, there would be no DeFi and altcoins, because no one would care about cryptocurrency. Altcoins and tokens only trade at current level because investors hope that they can repeat Bitcoin's movement, so it's not a coincidence that alts rise when Bitcoin goes up.

If you believe that DeFi or anything else from alt sphere can influence Bitcoin, you just have no idea about crypto.

The defi ecosystem greatly expands the capabilities of bitcoin. A smart contract cannot be hacked, it does not obey the decisions of the courts, the SEC and other governmental and non-governmental organizations.
I don't understand what you think that DEFI is a bubble and a vaporware?
The future belongs to large cross-chain platforms like Polkadot and ecosystems like Ethereum.
You may simply not invest in scam projects that promise 1-10% profit per day.

Smart contracts get hacked all the time, smart contract is just a program, and programs have bugs. Lots of DeFis were hacked this year, which lead to loses among their investors, as expected. Also it's not an entirely good thing that DeFi supposedly can't be regulated by anyone, because it just means that this field will be full of ponzi schemes and scams, and newbies will never be able to avoid them.


It's like saying "homeless people should just buy a house, problem solved".


People like to say "good project, to the moon", but so far none of them are actually creating anything useful that could be widely adopted. DeFi will not replace traditional finance, almost no one is actually interested in that.

All projects that involve with bitcoin like pairing other crypto could benefit bitcoin.

Yet, without bitcoin the altcoins may no have value. You see everything is connected to bitcoin and this give benefit both the crypto and bitcoin. The benefits is mutual for again bitcoin giving value to that coin and then the coin tha will be paired to bitcoin could benefit bitcoin also in the market.

This us the greater number of coins listed in coinmarketcap.com the better market of bitcoin it will be most likely altcoins should not be trusted long hold and for that investors will going to sell their altcoins or trade to bitcoin.

A lot of scam shit projects are being developed in DeFi function and also more coming continuously. Firstly i saw a few project was promising when this hype was starting  even though those was huge successful and listed on the big exchanges. A several days ago i saw a list where 10-12 DeFi scam project. Now it’s too risky investment for mostly DeFi project.

I will even help you find statistics  ;D
https://bitcointalk.org/index.php?topic=5267124
These are ridiculous numbers compared to recent hacks on major centralized exchanges. And note that Defi's fundamental projects have not been cracked.
Defi is regulated by his community and they do it better.

Do you want to create a cryptocurrency paradise without fraud? It is fantastic. If people do not want to learn how to invest, but immediately get x100 profit, then the result will be the same both on Forex and on the currency or commodity exchange. When will you start thinking right? If a fool has lost money on Forex, then Forex is to blame :) brilliantly. According to a fool, others are always to blame.

If you donate a house to a homeless person, then after a while he will be a homeless person. I saw a report about India, the government gave home to homeless people. And homeless people sold him and went to live on the street, because they do not want to live differently.

Watch this and compare to centralized exchanges.
https://info.uniswap.org/home

If someone is too lazy to read all of the above, then I will say:
Defi is not for fools, and making money here is even more difficult than on Forex and other exchanges.

Right on.

You just pictured this whole crypto thing as a big casino which is very true and also it is the main reason why most people stay away from it.

If common logic doesn't work on DeFi, then it is not my thing.

Why would I gamble my hard earned money on something I don't understand completely and is based on dumb luck?

Doesn't make any sense.

Whenever we have a few successful projects in any domain with cryptocurrencies, the scammers would follow. The same happened a few months back, with the IEOs. There is no doubt that DeFi is a revolutionary idea which can transform the cryptocurrency sector. But if the frequent scams are not prevented, then it will end up like some of the other failed concepts such as gold-backed cryptocurrency and crypto-ETFs.

Like the waves of ICO and "world computer" scams before them, these things probably have a short term benefit by bringing in people-- and a long term drag as they bankrupt the people that fell for them and make the whole space look like a bunch of scammers.

But it is mostly the investors themselves who are to blame. Due to laziness and greed, they will not spend even a moment researching the project, but like a sheep they transfer money. Of course, scammers just waiting for it. Unfortunately, but with DeFi, it's the same scenario as with ICO. In the long term, Bitcoin will gain, because thanks to the DeFi bubble more people will hear about cryptocurrencies, but unfortunately many of them will pay a high price for it.

Maybe, but DeFi is owned by the Ethereum Blockchain, so instead of Bitcoin it might be ETH that benefits from it. Especially when version 2.0 is coming, and everybody is accumulating ETH to gain passive income. But this is all speculation, who know when the DeFi is hype is over. It might be BTC that gets boosted, and get a huge pump.

Yes, bringing new people, fresh blood in the market, but there could be cases that this new blood is more wiser as compare to the irrational buyers in 2017. And this new faces, would get out out the Defi bubble burst and then turn their attention to bitcoin, so probably a win-win situation for us?

Just like we have witnessed today, altcoins is already bleeding while bitcoin goes to $12k. And this could heralded the start of a bull-run in this last quarter and then continue to move forward 2021.

I think its 50/50 benefitted in both sides. However, with or without DeFi Bitcoin will remain as the largest cryptocurrency in the market. The trend and popularity will continuously spreading all around the world as many people are trusting it, unlike DeFi which has a new existence to people and I absolutely have doubts with their projects.

The true is DeFi projects get benefit from Bitcoin, that's why holders sell their altcoin to Bitcoin because they realized Altcoin just the way to gain more Bitcoin.
People who bought DeFi coin know well this is the time to gain profit before the hype of DeFi end.

I agree, Defi projects or all of the projects that has been implemented or soon to be implemented are being paired by bitcoin or if not then to other altcoins that are being paired to bitcoin. All of crypto may it be directly or indirectly paired with bitcoin will have a tradable value to fiat currency or the altcoins being paired to it.

The source of value to a crypto is bitcoin and without bitcoin the cryptocurrency that are being created will have no value at all. So, it is better or important to keep bitcoin rather than other coins or tokens. However, keeping altcoins may mean high profit or big losses depending on the coin you keep and the team that manage the project. Usually it will be loses because only few projects of coins or tokens are doing well not like bitcoin.

not 50/50 because btc is more larger than defi and btc is more supreme than defi  . it can be 50/25 , 50 percent is what btc being contributed to defi and 25 percent is what defi brings to btc .

but why will they sell if they get benefit from btc ? they shouldnt do that because btc still helps them grow but selling for btc and own btc is also a better choice .

if they bought before and their coins still are on the rise they should do it but we dont also know if defi isnt just about hype

It isn't just about the hype, it's also about the exit scam.

Most defi things are constructed in a way that makes them a nearly free option on shitcoin vs btc price.  You put up some shitcoin to get loaned Bitcoin.  Shitcoin price tanks relative to bitcoin?  Default on the loan, lender gets worthless shitcoin and you laugh off into the sunset.  Shitcoin price moons? repay the loan and get your shitcoin back.

Most are also constructed so that some centralized party (or worse, some Sybil attacker) can just walk off with the coins-- low to no security and zero effective disclosure of the security risks.

Legitimate use for these things is essentially zero, the only one you see people promote in any detail is the use of loans to avoid capital gains tax but that *does not work*, because that activity is a "constructive sale" as any clueful accountant could tell you.

These schemes get pumped at the promoters expense to attract suckers to buy otherwise worthless associated tokens and to bring in masses for the exit scam.  It's like bugs to a bug zapper.

you are right, crypto related all project are attracted peoples but DEFI doing this very lightly. before defi hype crypto struggling to survive but after defi btc get a momentum to growing. so that defi  effect was special for crypto. this is my personal opinion.

^ Every time when there is a project Defi hype there will be a purchase of bitcoin in the market since these Defi projects need to purchase ethereum or bitcoin to invest in Defi token projects. So, I think there could be a huge impact in bitcoin price not only bitcoin or the entire market that can able to use to invest Defi token/projects. Nevertheless, if the scam projects of Defi will continue, this also has a negative side effect to the bitcoin since they are not a bitcoin holder.

This is true. If anything, it is DeFi that is benefitting from bitcoin's popularity and promises. No return was being made on bitcoin's part. It can even become bad for the crypto if the coin was a sham and rugpulled as the outside world will always generalize everything. So no, Bitcoin is not benefitting from the existence of these DeFi projects.

bitcoin stood alone before the popular and famous bitcoin defi project, the price is fantastic, in my opinion there is no advantage for bitcoin with the presence of the defi project.

 publicity we've encountered some advantages and disadvantages but somehow the whole market back into mainstream as before. I think its 50/50 benefitted in both sides. And also I think there could be a huge impact in bitcoin price not only bitcoin but the entire market that can be able to use and invest invest Defi token/projects.

Yes, alts move inversely proportional with bitcoin's dominance, and bitcoins price is relative to it's dominance, this means that any altcoin with BTC pair can affect the price of bitcoin. Most coins that are listed on major exchanges has a BTC pair. The DeFi hype attracted many investors and therefore has a great effect on the market movement as a whole.

I think yes. Because the sudden hyped in the market today and during the recent months are because of defi. Bitcoin is affected by the defi projects due to the potential investors who want to invest again in market. Since the top pair in exchanges are btc and usdt to altcoins, bitcoin was being bought as well. In fact, there is a btc dominance in the market till now. Altcoins who turned into defi are hard to move because bitcoin is rising again.

defi is bullish for bitcoin, not a doubt in my mind. just look at the amount of WBTC or other wrapped bitcoin tokens in circulation---those are literally bitcoins that have been taken out of market circulation. in re to supply and demand, that's less supply that people can buy on the bitcoin markets. supply + demand = price. you do the math. :P


gambling on the latest hype token is first level thinking IMO. noobs to the market reliably do that, and that's essentially why you can make money without dumb luck.

as long as you understand that each defi token is just empty hype/bubble---launching, pumping, and dumping---and you treat them as such, then you can make money. get in, get out, take your 2x and run. that's all shit tokens are good for: profiting in bitcoins that you can roll into cold storage. never get caught holding the bag......

in the old days, before ICOs and IEOs and defi, people used to send their coins to bitcoin doublers. face it, crypto investors are prone to being total speculators! in that sense, i don't see defi (or any of the other crazes like ICOs) as good or bad for bitcoin. they just are. speculators are gonna speculate. mainly what these crazes do is they inflate bitcoin rallies/bubbles harder, and then they also intensify the crash that comes when the bubble pops. that's because the bitcoin market is used as a gateway/onramp to the altcoin/token markets.

DeFi has introduced blockchain revolution to many people that has been staying away for years, this is a way of increasing an adoption and in return benefiting not only the BTC alone but the whole crypto space.

Of course, there is a relationship between them, just as the ICO and IEO projects affect the Ethereum market, so do the DeFi projects play a vital role for pumping the ETH and Bitcoin market.

When we investors are invested on DeFi projects, often we have to use Bitcoin or Ethereum to buy coin, which has given a positive impact on the Bitcoin market. But keep in mind Bitcoin has its own market demand.

We must be able to distinguish between price increases on hype coins and price increases on ordinary coins. Hype coins can go up in price in a short time and the price goes down in a short time. Whereas ordinary coins that have loyal community support and support for a long-term development focus, will find a more stable chart and tend to rise when their business model is adopted by large companies or official companies from the government.
So in my opinion, there is no relationship between Bitcoin and Hype coin (DeFi)

I see there are many people already classified Defi as scam, perhaps this isn't true since it is still part of the cryptospace that we all know are risky, there are many people who earn profit in Defi projects just making sure that they've chosen a legit one. This, thus impact bitcoin in a positive way as their earning could be used to go with the bitcoin price increase hype.

On the other hand, its negative impact is when scam projects uses some tornado cash mixers to take profit and sell their coins

Is this some consequence of the structure of "defi" lending contracts?  I hadn't paid them much attention, but a quick search showed several where you use BTC or ETH as collateral for a loan denominated in some "stablecoin".  That leaves you exposed to the risk of (paper) losses if BTC or ETH declines, so it doesn't seem like a constructive sale to me, unless the IRS is treating all cryptocurrencies as substantially similar assets (which might be warranted given the amount of obfuscation alts try to pull off).

The DeFi bubble has significantly deflated. It was only a matter of time given the ridiculously high yield percentages which were unsustainable. It is likely that a lot of this value leaving DeFi has flowed into Bitcoin which is something which has real use cases besides ponzi pump and dumps.