Will "De-Fi" beat Banks sometime in the future?

[bitcon]

For me, defi-projects have already replaced banks. If 2 years ago I deposited my money in a bank and got 0.1% in dollars, now I can deposit my crypto in different DEFIs and get much bigger interests even in stablecoins. So personally I strongly believe in the crypto industry and I hope that it can replace banks one day, as it is more reliable to trust technologies and blockchains than people who work in banks.

[RussianEnglishTranslation]

Decentralized Finance ("De-Fi") is a new trend which has been gaining steam ever since the first smart contract platform (Ethereum) came into existence 6 years ago. Right now, it's possible to borrow, lend, and even trade crypto assets without the need for a middleman. The introduction of stablecoins brought us the stability of Fiat along with the convenience of crypto. People can have money in Fiat, without the need for a bank account and still earn interest by holding it. This brings complete financial freedom to the world (something that was never thought possible before the inception of Bitcoin and Ethereum).

Of course, not everything is reds and roses. "De-Fi" has its limitations since it's fairly new in the mainstream world. Blockchain is still unable to scale to millions or even billions of people worldwide, so the experience will not be the same as with Banks. Fortunately, scaling solutions are on the works with the hopes of putting an end to such issues. If all goes well, "De-Fi" might beat banks in the future. Everything will depend on mainstream adoption for this to succeed in the long run.

What do you think? Will "De-Fi" beat banks in the long term? Or is it still too early to tell? Do banks consider "De-Fi" as a threat to their existence? Your input will be greatly appreciated. Thanks in advance.

If anyone wants to use DeFi at scale it will need to be done on an L2 or sidechain like Aurora otherwise gas fees will make it unprofitable.

[MSN02]

Yes, it only makes sense. The crypto revolution is happening right now and in the next 5-10 years it’s going to take over. Right now there are so many smart people, money, and etc in crypto and more are being drawn to it daily. Crypto helps the world in many ways and once the technology is better the whole world will start using it and most banks will be out of business. I think some of the financial structure will stay but most will be gone and replaced by  defi. I think projects like NEAR, ETH, Sol and ADA are going to be huge in the near future.

[Melignya]

I found another interesting article about DeFi, I think many people will be interested  https://blockster.com/blockdesk/1424_square-is-building-a-defi-business-using-bitcoin

[Abiky]

For me, defi-projects have already replaced banks. If 2 years ago I deposited my money in a bank and got 0.1% in dollars, now I can deposit my crypto in different DEFIs and get much bigger interests even in stablecoins. So personally I strongly believe in the crypto industry and I hope that it can replace banks one day, as it is more reliable to trust technologies and blockchains than people who work in banks.

"De-Fi" rewards are quite attractive compared to banks' interest rates. But they're still struggling to reach mainstream adoption because of Blockchain tech's scalability bottlenecks. High fees and slow speeds makes "De-Fi" inferior to mainstream banks. No matter how far "De-Fi" will go, it'll never replace banks because of its decentralized and censorship-resistant design. Banks are endorsed by governments, which gives them a high level of trust among everyday people. In the US, banks are insured so your money is protected against undesired situations (hacks, theft) in real life. Not like crypto where you're solely responsible of protecting your funds. If you become a victim of a hack, there's no way to claim your money back. It's why I strongly believe "De-Fi" is far from replacing banks anytime soon. Things could change if "De-Fi" solves its underlying issues. Just my thoughts

[Princejebs]

DeFi of today No bit perhaps the improve futures ones.
The question is how often do we hear that banks get rob the way DeFi is been exploit everytime. The last one that happened about 600 million until the hacker realized he couldn't spend the fund and return it claiming that he was protecting the project, who does that? 
Bilaxy exchange and liquid exchange was also hacked, now tell me how we are going to realize this revolution whe the environment is not that save for investors. We have lots of wall to build to protect everyone.

[Devifajarina]

Decentralized Finance ("De-Fi") is a new trend which has been gaining steam ever since the first smart contract platform (Ethereum) came into existence 6 years ago. Right now, it's possible to borrow, lend, and even trade crypto assets without the need for a middleman. The introduction of stablecoins brought us the stability of Fiat along with the convenience of crypto. People can have money in Fiat, without the need for a bank account and still earn interest by holding it. This brings complete financial freedom to the world (something that was never thought possible before the inception of Bitcoin and Ethereum).

Of course, not everything is reds and roses. "De-Fi" has its limitations since it's fairly new in the mainstream world. Blockchain is still unable to scale to millions or even billions of people worldwide, so the experience will not be the same as with Banks. Fortunately, scaling solutions are on the works with the hopes of putting an end to such issues. If all goes well, "De-Fi" might beat banks in the future. Everything will depend on mainstream adoption for this to succeed in the long run.

What do you think? Will "De-Fi" beat banks in the long term? Or is it still too early to tell? Do banks consider "De-Fi" as a threat to their existence? Your input will be greatly appreciated. Thanks in advance.

The very good development that they have prepared from the beginning before, this shows that the convenience of using crypto is getting better at this time and the crypto world is starting to offer a solution to people's concerns regarding the survival of the crypto world in the future.

De-Fi as a whole has an important role to play in doing all of this well, but due to the reach of the blockchain which is not yet able to accommodate or reach millions of people around the world, this does not allow De-Fi to replace or beat Banks in the long term, even as a threat yet. so meaningful for the continuity of the Bank or fiat currency.

[Baihaki Khaizan]

Decentralized finance technology was created as a solution to the lack of public access to financial services, for example as follows:

-Some people do not have access to create bank accounts or use financial service products.

-There are fees charged to customers in utilizing financial services.

-There is a potential for misuse of data that can be done by financial services companies.

-Financial service companies are vulnerable to intervention by the government or regulators.

-Send sending money can run for a long time.
Financial service companies have never been transparent in providing customer data.

Because of these benefits, coupled with the security of a capable blockchain system, it is not surprising that many people say that DeFi can be a public financial solution in the future. Moreover, all financial service activities such as lending and borrowing, crowdfunding, and insurance can be carried out over the DeFi network.









https://blog.pluang.com/cerdascuan/investasi/decentralized-finance-masa-depan/

[Johnyz]

We’re talking a lot of this already, cryptocurrency can’t replace banks totally and we all know we still need the banks for liquidity and I don’t see any country without a bank, government will not allow that to happen.

Yes, a lot of good things by using DeFi but not every is aware of this, we are still far from the mass adoption so this wont happen in the coming years but of course, I’m also open for this possibility even if it seems too impossible to happen.

[TelolettOm]

This may be likely, will crypto beat fiat someday?
if it is about someday, we will not know because we don't know the future. We don't know what will happen 100 years later or 150 years later.
if it is about the current and near years, I think it is impossible for Defi to beat banks. Because Banks are such complicated systems from a country and also world bank. This is centralized. Countries and also world banks will never let this be beaten by DeFi.

[TimeTeller]

We’re talking a lot of this already, cryptocurrency can’t replace banks totally and we all know we still need the banks for liquidity and I don’t see any country without a bank, government will not allow that to happen.

Yes, a lot of good things by using DeFi but not every is aware of this, we are still far from the mass adoption so this wont happen in the coming years but of course, I’m also open for this possibility even if it seems too impossible to happen.

There’s a lot of factors to be consider before this thing to happen, we might not be able to witness it because it takes time and maybe the next generation can have now the choice either to use fiat or crypto, they’ll work better at the same time. If that days come, hopefully cryptocurrency has been widely use and offers the same things just like the banks, especially the loan part of the banks.

The concept itself of DeFi is actually great but I don't think we will see this flourish and replace banks in our lifetime.
The current situation alone in DeFi market is quite vulnerable, hacking, inside job are just common issues in DeFi platforms.
So the trust of using DeFi platforms is still questionable to many. Besides only small percentage of global population are in crypto market.

[kurniawan05]

It is difficult for Defi to beat a bank, nowadays people feel more secure in saving money in a bank than in one of Defi's projects, besides that banks have been implemented in everyday life, both in society and in the state.

[Shasha80]

This may be likely, will crypto beat fiat someday?
if it is about someday, we will not know because we don't know the future. We don't know what will happen 100 years later or 150 years later.
if it is about the current and near years, I think it is impossible for Defi to beat banks. Because Banks are such complicated systems from a country and also world bank. This is centralized. Countries and also world banks will never let this be beaten by DeFi.

We are all not fortune tellers, so we don't know what will happen in the future. But I agree with you, speaking of the current situation, it is very
unlikely that De-Fi can replace banks. Moreover, the government always wants to control the people's finances, if the government allows De-Fi
to replace the bank they will lose that control. After all, the banking system has been running for a very long time and many people seem to
still be comfortable using it. So it seems unlikely that De-Fi beats the bank.

[evichi]

DeFi is innovative in the finance sector. It is a challenge to the banking sector as investment projects and other banking transactions can be carried out just as obtainable in the bank, but this time, without a third party. Currently, many people are not yet in touch with the internet talk less of embracing crypto currency and the DeFi world. It will take some time if not years to meet up or overtake the banking sector which has been in existence for decades. With awareness, trust and security, DeFi can challenge the banking sector in the future.

[Jilapikhamu]

In my opinion, maybe not because Crypto huge risk they don't have any office or something where people can ask for their loss or something other side bank have this kind of facilities and people need Trust security not risk

[omone1]

Defi will not only kill banks in the future but destroy their operations. I can provide liquidity for USDT-USDC and earn some decent coins which appreciate in value than the stable coin itself without been censored, and can stake my money and unstake at will without having to fill any paper and no need for central approval. Although at the moment, the risk are there like coin dumping, rug pulling, flash loan exploit and contract bug. A lot still need to be done, we shall get there.

[ene1980]

In my opinion, maybe not because Crypto huge risk they don't have any office or something where people can ask for their loss or something other side bank have this kind of facilities and people need Trust security not risk

If you look at the good projects majority have offices but i did not understand the loss part. If you are trading in the stock market do you go to the stock exchange and raise your complaints and see how you accumulated the loss. If you end up in a loss it is fairly simple, you did not study the project and you took the risk and lost your money.

Defi will not only kill banks in the future but destroy their operations. I can provide liquidity for USDT-USDC and earn some decent coins which appreciate in value than the stable coin itself without been censored, and can stake my money and unstake at will without having to fill any paper and no need for central approval. Although at the moment, the risk are there like coin dumping, rug pulling, flash loan exploit and contract bug. A lot still need to be done, we shall get there.

Since you very well said about the negative aspect, do you think it can ever replace the baking sector. How about you want to make any transactions and purchase cryptocurrency or invest in a new project, the only option is you use the baking system.

[guydin]

Decentralized Finance ("De-Fi") is a new trend which has been gaining steam ever since the first smart contract platform (Ethereum) came into existence 6 years ago. Right now, it's possible to borrow, lend, and even trade crypto assets without the need for a middleman. The introduction of stablecoins brought us the stability of Fiat along with the convenience of crypto. People can have money in Fiat, without the need for a bank account and still earn interest by holding it. This brings complete financial freedom to the world (something that was never thought possible before the inception of Bitcoin and Ethereum).

Of course, not everything is reds and roses. "De-Fi" has its limitations since it's fairly new in the mainstream world. Blockchain is still unable to scale to millions or even billions of people worldwide, so the experience will not be the same as with Banks. Fortunately, scaling solutions are on the works with the hopes of putting an end to such issues. If all goes well, "De-Fi" might beat banks in the future. Everything will depend on mainstream adoption for this to succeed in the long run.

What do you think? Will "De-Fi" beat banks in the long term? Or is it still too early to tell? Do banks consider "De-Fi" as a threat to their existence? Your input will be greatly appreciated. Thanks in advance.

 It is really easy for people to interact with banks now, but they are not familiar with Blockchains, so it is really difficult to some to start using digital money, but personally I strongly believe in crypto world and I hope that we will really use Defi-projects and Blockchains for all our payments and other financial operations in the future, as nobody can ban your money in this world, you are free.

[Bitcoin Seller]

I think that banks and governments consider crypto to be a real rival for them. Crypto market is uncontrolled, so authorities just can't approve of developing crypto and replacing traditional financial systems with crypto. So they are likely to start forbidding crypto to some extent. Or they will create their own currencies that will be under their control

[ampu]

DEFI is just a financial solution and it will not be able to replace the banking system the way people expect Bitcoin.
People will need safety, security, and certainty about their money. If DEFI projects really meet the needs of the people, it will certainly be the choice of everyone in the future. It's too early to conclude anything.