Is DeFi benefiting Bitcoin?

[zasad@]

Read on here: Is DeFi benefiting Bitcoin? and let us know your thoughts on this.

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.

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[witcher_sense]

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?

[Warkop]

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. 

[Mandarava]

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.

[CryptopreneurBrainboss]

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.

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.

[erikoy]

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.

[tsaroz]

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.

[buwaytress]

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.

[LoyceV]

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...

It's in the [Interviews] with Bitcointalk members thread:

LoyceV (Legendary)
One of the most participants in the forum.
~
10. What do you think about the DEFI ecosystem?

"This is the first time I hear that name. A quick search shows that it has to do with centrally controlled code-is-not-law Ethereum, and since The DAO they've lost all credibility when they abandoned everything they said to stand for to protect their own financial interests. I'm still amazed people fell for that. Smart contracts can't work if the only person who understands the contract is called: "The Attacker". I simply gave up on following anything related to Ethereum, because the entire coin is build upon a flawed foundation."

[carter34]

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.

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.

[sheenshane]

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? 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.

[MCobian]

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.

[buwaytress]

"This is the first time I hear that name. A quick search shows that it has to do with centrally controlled code-is-not-law Ethereum, and since The DAO they've lost all credibility when they abandoned everything they said to stand for to protect their own financial interests. I'm still amazed people fell for that. Smart contracts can't work if the only person who understands the contract is called: "The Attacker". I simply gave up on following anything related to Ethereum, because the entire coin is build upon a flawed foundation."

[/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.

[davis196]

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.

[Dsdaq]

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.

[yicogev]

How To Enabled Post?

[LordShanken]

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.

[Velvet78]

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.

[Jaered]

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

[ChiBitCTy]

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.