Is DeFi benefiting Bitcoin?

[gmaxwell]

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.

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[LordShanken]

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.

[Sadlife]

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? and let us know your thoughts on this.

Thanks,
Karl
Bitcasino.io

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.

[TravelMug]

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.

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.

[Blue MoonFlower]

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.

[Strongkored]

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.

[Buttermellow]

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.

[imstillthebest]

I think its 50/50 benefitted in both sides. However, with or without DeFi Bitcoin will remain as the largest cryptocurrency in the market.

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 .

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.

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 .

People who bought DeFi coin know well this is the time to gain profit before the hype of DeFi end.

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

[gmaxwell]

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.

[Adhar]

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.

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.

[DoublerHunter]

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.

^ 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.

[CarnagexD]

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.

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.

[Mr.sprin]

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.

[BryanJohn]

 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.

[Wingo]

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.

[Wallflower28]

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.

[figmentofmyass]

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.

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.

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.

[Zemomtum]

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.

[Swordsoffreedom]

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.

[bayu7adi]

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)