The Decentralized Economy During COVID-19

[Abiky]

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.

[jackg]

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.

[Juggy777]

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

[crwth]

Do you think that COVID-19 will become extremely beneficial to the decentralized economy in the long term?

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.


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

[BIT-BENDER]

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,

[exstasie]

Ever since COVID-19 took the world by storm, people have been resorting to the world of "Decentralized Finance" (De-Fi).

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.

If the current monetary system collapses in its entirety

When? How?

What will happen with crypto once COVID-19 comes to an end?

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.

[Paycoinzzz]

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 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.

[Jating]

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.

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

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.

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.

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.

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.

[$crypto$]

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.

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.

[sunsilk]

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 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.

[apaben]

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.?

[stompix]

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.

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?

If the current monetary system collapses in its entirety,

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.

Do you think that COVID-19 will become extremely beneficial to the decentralized economy in the long term?

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

Is "De-Fi" way overhyped these days?

Totally!

[bitgolden]

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.

[adamistraybar]

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

[hunter7519]

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.

[davis196]

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.

[Russlenat]

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.

[naikturun]

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.

[hatshepsut93]

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.

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.

[The Sceptical Chymist]

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.

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.

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.