Analyst: Bitcoin and DeFi to Increase in “Lockstep’ Due to This
This meant that Bitcoin’s growth will ultimately increase DeFi utility and funding since the underlying basis of the two ecosystems being currency and finance are intrinsically linked to one another. Bitcoin was created to dethrone monetary sovereignty while DeFi was created to overthrow traditional banking with both having two different “final bosses”, he stated. Therefore, growth in one ecosystem will steer the other, referencing United States currency and banking sector intertwined growth. However, for Bitcoin to grow concurrently with DeFi and also likewise, there has to be a move to link the two sectors. At present, Bitcoin is standing aloof from the Defi sector. Khan sees immense growth if the reserve currency of crypto which is Bitcoin is connected to the Wall Street of crypto referring to DeFi. Steven Becker, MakerDAO head, in a Bloomberg interview stated that connecting Bitcoin and Ethereum-DeFi is a brilliant idea which may serve to create the on-chain economy desired. However, this writer believes Bitcoin and the DeFi link up will only materialize in the long term with the need to catch the right trend and risk-on at the right moment.
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Jul