Who would have thought that decentralized finance, supposed to put banks and other institutional players on the sidelines, would be so lacking in interest? There are several reasons why people are wary of DeFi technologies, to name only the volatility of cryptocurrencies, the bear market or excessive hacks and scams depriving investors of their assets. Yet, Dennis Jarvis still believes in mass adoption of DeFi. In his opinion, we will not be able to exclude bitcoin from this perspective.
Bitcoin as a DeFi Adoption Lever
During his speech at the Blockchain Economy Summit Dubai 2022, Dennis Jarvis, CEO of Bitcoin.com, pointed out that bitcoin can act as “ front door in the DeFi space. Indeed, he believes that the King of Crypto constitutes “ a decentralized platform without trusted third parties that offers a high level of security and anonymity “.
” I think most people are mostly interested in discovering bitcoin first. This is the first step in their crypto journey, so it includes buying their first bitcoin “, he added.
All in all, Jarvis wants to get investors to trust decentralized finance again with bitcoin. He acknowledges that the current image of DeFi is tarnished after a succession of infrastructure attacks such as Axie Infinity’s Ronin Bridge.
Also, the collapse of Terra would be the source of great demotivation among people. A reaction that seems completely normal after finding 40 billion dollars in losses, thousands of victims, etc. Still it should be specified that the first responsible for all this fiasco, currently targeted by an arrest warrant, is still on the run.
Asked by Cointelegraph, Dennis Jarvis had proposed another way to move towards DeFi and dApps. This must start with the exchange of BTC against other cryptocurrencies such as ETH, DOGE, AVAX or even MATIC via a decentralized exchange (DEX).
The plurality of channels as an asset
The future of cryptos rests on the “multichain”, according to the boss of Bitcoin.com. On the one hand, we have a plurality of chains supporting several innovations, and on the other, we will consider a DeFi space that has a “ enormous potential for growth and development “. This is the reason that drives Jarvis and his entire team to promote DeFi to their users.
Right now, bitcoin maximalists seem preoccupied with scams. The crypto universe as a whole is inhabited by good guys, bad guys, and ugly guys. It is completely normal for bitcoiners to hate scammers and cryptocurrency thieves. Unfortunately, this hatred leads them to reject everything related to DeFi, to swear only by Bitcoin.
Dennis Jarvis said he has a game-changing plan:
” I think there are maximalists out there who are concerned about people getting ripped off and ripped off, and so are we. […] We do our best to help them avoid the riskier, possibly potentially scammed, side of crypto. »
Bitcoin and the future of DeFi
Last September, BeInCrypto has put together a bouquet of expert opinions regarding the future of DeFi. To see this compilation, their opinions seem disparate on the issue. Indeed, the future direction of DeFi is divisive.
If, for example, Anderson Mccutcheon (CEO and founder of Chains.com) foresees the fall of decentralized finance due to lack of demand, Dmitry Tolok (co-founder of Primex Finance) and Asaf Naim (co-founder of Kirobo) foresee its generalization.
Mr. Naim clarified that:
” From my perspective, DeFi is likely to become ubiquitous in the coming decades, once scalability, usability, and security issues are addressed. For now, it is used by a small number of people who have extensive knowledge and indeed the barrier to entry is high due to the knowledge required. It will take time for the industry to lower barriers to entry for DeFi to become mainstream. »
In the current environment undermined by the bear market, many are questioning DeFi for its volatility. But Diane Dai, co-founder of DODO, remains confident as the number of DEX users continues to grow. As for volatility, here is his explanation:
” When something is new it is often volatile, but over time it stabilizes. In the same way that some people prefer an apple to an orange, some people will always prefer traditional finance to DeFi. However, the service offered by the blockchain will allow it to become more and more mainstream and still have value. One day it won’t be so volatile and that will mean that all the value has been discovered. It’s not just about finance, it’s about a cultural paradigm shift. »
As a conclusion, we will say that despite the position of Bitcoin maximalists and the bear market, many players believe that DeFi has a better future. Nevertheless, we must recognize the divergence of ideas concerning this space and the existence of other more inclusive alternatives such as that put forward by Dennis Jarvis. The latter, in fact, mentioned the possibility of associating bitcoin with DeFi, given the high level of security offered by the blockchain.
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