The Future of Bitcoin: Unlocking the Potential of Decentralized Finance

[Edcrypto91]

Greetings to all.

I'm eager to discuss Bitcoin's potential to transform the decentralized finance (DeFi) industry with you today. As you are all aware, Bitcoin was created in 2009 as a decentralized digital currency. Since then, it has developed into the most widely used cryptocurrency in the world, with a market cap of over $1 trillion.

Although the primary use of Bitcoin has been as a speculative asset or a store of wealth, its underlying technology, the blockchain, has the potential to completely change a variety of industries, including finance. The growth of DeFi in particular has created new opportunities for developing decentralized financial applications that are open, safe, and available to anybody with an internet connection.

What what is DeFi, and how can Bitcoin use it?

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[Charles-Tim]

DeFi, financial service on blockchain that does not make use of central authority like banks used in centralized finance. With DeFi, staking and APY is possible.

What what is DeFi, and how can Bitcoin use it?

You can not stake bitcoin.

You can make use of side chain tokens like wBTC and the likes which are actually not bitcoin, they are altcoins (token) that are created on another blockchain. Example is wBTC which is an ERC20 token. There are many of them like that, but they are all altcoins.

Staking bitcoin will only drives it towards centralization, and from being a commodity towards being a security. I will prefer bitcoin to always have its commodity property.

[ElmedoRator]

I believe that with the development of blockchain technology and community support, these problems will be solved and Bitcoin will continue to grow in the future. I believe that Bitcoin and other cryptocurrencies both have the potential to change the way the traditional financial system works and help unlock the potential of decentralized finance. Bitcoin is a disruptive technology and its potential in the future is enormous. Bitcoin has opened up endless possibilities for decentralized finance, allowing users to exchange value without the need for traditional intermediaries like banks or financial institutions. This reduces costs, increases transparency, and gives users autonomy.
However, Bitcoin is facing many challenges in terms of reliability and practicality in use. Bitcoin's transaction speed is limited, and the consensus among miners is also unstable. In addition, the use of Bitcoin faces many difficulties in converting to traditional currencies and the legal regulations are very vague in some countries.

[EarnOnVictor]

What is DeFi ?

DeFi is a project that challenges the CeFi we all know. It simply means Decentralized Finance which is the opposite of the Centralized Finance we all know in which our money and assets would be custodial and overseen by a regulator, which includes the central bank. DeFi changed the narrative by using the Peer-Peer approach in which there will not be an oversight authority, yet still fulfilling the obligations of banks, liquidity providers and financial institutions.

and how can Bitcoin use it?

Of course, Bitcoin uses it, but not as much as networks like Ethereum which has more projects due to its scalability. Yet, Bitcoin as the number one and the most decentralized crypto network, the DeFi project is useful through it. Projects like Stack and Liquid Network among others are proof of this.

[Charles-Tim]

DeFi is a project that challenges the CeFi we all know.

It is best to only use the difference to compare both to know the differences, DeFi is just an alternative to CeFi in my opinion.

Of course, Bitcoin uses it

No. Maybe you are confusing it with altcoins that people thought are bitcoin, but not bitcoin. You can check my explanation above.

[Helena Yu]

Although the primary use of Bitcoin has been as a speculative asset or a store of wealth, its underlying technology, the blockchain, has the potential to completely change a variety of industries, including finance. The growth of DeFi in particular has created new opportunities for developing decentralized financial applications that are open, safe, and available to anybody with an internet connection.

Wrong, the primary use of Bitcoin is should become a currency, but many people use it as a speculative asset.

What I saw in most projects about DEFI, they're offer about staking and lending in a centralized smart contract. If DEFI is really 100% decentralized and no one can touch it, we will not see any news about hack in DEFI projects, but DeFi hacks [history].

In lending, you need an escrow where the escrow need to accept the collateral from the borrower and verify it, also it's need to verify if the lender is already accept the repayment. I don't think there's such decentralized can act like that.

[tbct_mt2]

Although the primary use of Bitcoin has been as a speculative asset or a store of wealth, its underlying technology, the blockchain, has the potential to completely change a variety of industries, including finance.

Bitcoin has many use cases from its outstanding and innovative design by Satoshi Nakamoto. Each person has personal ways to use bitcoin or his or her own. Bitcoin with its decentralized network, censorship assistant technically and world-class developers behind, can be built up with more use cases in future.

The growth of DeFi in particular has created new opportunities for developing decentralized financial applications that are open, safe, and available to anybody with an internet connection.

What what is DeFi, and how can Bitcoin use it?

Even Bitcoin is a decentralized cryptocurrency and it is actually a best decentralized one in cryptocurrency space, I don't like if you want to connect it with DeFi.

DeFi is mostly shilled by altcoins which are centralized by their founder teams and how their token distributed among top holders. They are not competitive with Bitcoin about level of decentralization.

And if you want to use Wrapped Bitcoin tokens to have Bitcoin in DeFi, it is bad. Those wrapped tokens are not real bitcoin and they are only products created by altcoin projects. It is possible if you see Bitcoin is traded at $100,000 but a wrapped bitcoin token loses its value (de-peg) and falls to $100 or lower.

[un_rank]

Since then, it has developed into the most widely used cryptocurrency in the world, with a market cap of over $1 trillion.

Once had a market cap of over $1 trillion, the current market cap is just over $500,000 at the time of writing.

Although the primary use of Bitcoin has been as a speculative asset or a store of wealth, its underlying technology, the blockchain, has the potential to completely change a variety of industries, including finance.

The primary use of bitcoin was as a currency which did not need a regulatory body to function and then as a store of value. Speculative features were secondary uses as the price increased and became more volatile.

What what is DeFi, and how can Bitcoin use it?

DeFi is an open and unregulated sector which attracts tons of users and developers. It has its pros and cons but does not need to be adopted by bitcoin.

- Jay -

[Z-tight]

However, Bitcoin is facing many challenges in terms of reliability and practicality in use.

What are these reliability and practical challenges, BTC is very easy to use and is a reliable currency if the spender controls the private keys to their address, there's no mass adoption yet, but BTC is already used almost globally in different numbers depending on the country.

Bitcoin's transaction speed is limited,

Layer two systems like the Lightning network is a solution to the problem of scalability. By the way BTC's transaction speed may not be the fastest, but it is one of the most immutable, irreversible and safest, there are some networks in which transactions are confirmed faster, but those transactions can still be reversed after a long time. In the BTC network once there is 3 transaction confirmations, the funds can no longer be reversed, and i think i will take this level of speed and security, rather than faster speed and less security.

and the consensus among miners is also unstable.

There is no instability in the BTC consensus mechanism.

In addition, the use of Bitcoin faces many difficulties in converting to traditional currencies and the legal regulations are very vague in some countries.

It is easy to convert from BTC to traditional currencies and back, either using centralized or p2p exchanges. If BTC is not banned in your country, then no worries about the vague legal regulations there, the government are confused on how they can control a decentralized currency, but they cannot.

[BVeyron]

Greetings to all.

I'm eager to discuss Bitcoin's potential to transform the decentralized finance (DeFi) industry with you today. As you are all aware, Bitcoin was created in 2009 as a decentralized digital currency. Since then, it has developed into the most widely used cryptocurrency in the world, with a market cap of over $1 trillion.

Although the primary use of Bitcoin has been as a speculative asset or a store of wealth, its underlying technology, the blockchain, has the potential to completely change a variety of industries, including finance. The growth of DeFi in particular has created new opportunities for developing decentralized financial applications that are open, safe, and available to anybody with an internet connection.

What what is DeFi, and how can Bitcoin use it?

Decentralised data technology is a new step in data storing technologies. BTC, altcoins, NFT make a strong impact on data processing industry. This is what can make cryptocurrencies the new gold. On the other side, this type techonologies can be used by fiat money holders and fiat money emitters in order to stabilize control over fiat money systems.

[aoluain]

My take on Defi is that it there will be a third party, someone or institution who creates
whatever service is designed. This obviously goes against everything Bitcoin was invested for.

The potential for corruption and scams is there once a third party is involved, also being a
third party allows them to act the same as any FIAT based institution.

Look what happened to Celsius for example.

[BVeyron]

Greetings to all.

I'm eager to discuss Bitcoin's potential to transform the decentralized finance (DeFi) industry with you today. As you are all aware, Bitcoin was created in 2009 as a decentralized digital currency. Since then, it has developed into the most widely used cryptocurrency in the world, with a market cap of over $1 trillion.

Although the primary use of Bitcoin has been as a speculative asset or a store of wealth, its underlying technology, the blockchain, has the potential to completely change a variety of industries, including finance. The growth of DeFi in particular has created new opportunities for developing decentralized financial applications that are open, safe, and available to anybody with an internet connection.

What what is DeFi, and how can Bitcoin use it?

Decentralised finances and blockchain technology are the inventions of IT era, this type improvements have been somehow imminent, since most financial structures experience problems with data processing. The number of digital money users increase tremendously: I assume (not definitely, but smthn about this) that 30% of all the purchases in the world are performed in digital form these days, so the overall amount of financial data and the intensity of new data creation increased hundreds or even thousands times in a couple of decades: about 20-30 years ago all the digital money operations in the world could be performed with a couple of mainframes, now the reality is different. So all the IT companies providing hardware and software for accountant structures and banks are designing new tools for working with this newlyborn huge digital money system, and blockchain is one of these tools, it can be adopted not only by cryptocurrency designers, but also by companies working with fiat money: as a compound of backend engineering.

[death69]

Ah, Bitcoin. The OG cryptocurrency. It's like the Tom Brady of the crypto world: getting old, but still kicking ass and taking names.

But can it really transform the DeFi industry? As someone who's dabbled in the crypto game a bit (by which I mean I bought some Dogecoin once), I'm not sure. I mean, sure, it's got some cool tech and a big market cap, but it turns to be a digital gold

As with any new technology or industry, it's important to approach it with a healthy dose of skepticism and curiosity. Sure, Bitcoin may have some potential to shake things up in DeFi. But let's not forget about all the other players on the field.

[bbc.reporter]

@death69. I reckon the people in the american football thread would certainly disagree with you on Tom Brady. His last good season was on 2020 and won the superbowl, however, on 2022 he is old without the other words you mentioned hehe.

Decentralized finance in bitcoin will never be supported because the culture in the bitcoin community is to be cautious in development which causes the developers to take the safer decisions and be unadventurous. Nothing wrong with this, I reckon. The cryptospace needs a solid foundation.

There is this rollkit being developed for bitcoin, however.



Even as the crypto community grapples with the launch of NFT-like storage on the Bitcoin blockchain, more innovations are rolling in.

Rollkit is a new framework developed by Celestia, a project looking to modularize the different components of a blockchain. Rollkit, which enables developers to deploy rollups, which are scaling solutions which process transactions off a Layer 1 chain to minimize transaction costs, was introduced by Celestia on Feb. 21.

Rollkit allows developers to customize and choose their data availability layer, which serves as a source for blockchain data, as well as the execution layer, where transactions are processed.

Source https://thedefiant.io/celestia-bitcoin-rollups

[Gallar]

Greetings to all.
Although the primary use of Bitcoin has been as a speculative asset or a store of wealth, its underlying technology, the blockchain, has the potential to completely change a variety of industries, including finance. The growth of DeFi in particular has created new opportunities for developing decentralized financial applications that are open, safe, and available to anybody with an internet connection.

The decentralized system that is applied to bitcoin, will indeed be very good if it can also be applied to a fiat money system, especially if it comes to adopting bitcoin, it will definitely be very good. Because if the system is implemented in a country, it will definitely make many people financially free. But for now and maybe not for a while, this decentralized system will not be easy to implement. Because we live under the leadership of a country that is controlled by its leaders and government. So even logically we are already trapped in a centralized system, and it will be difficult to get out of this system or rule. So the key for this decentralized system to be implemented in a country, of course, is the leader and also the government. Because if the leader and government cannot accept this decentralized system, it will definitely be difficult to implement it, maybe even impossible.