You can now buy your Tesla with Bitcoin
March 25, 2021What is a Non-Fungible Token (NFT)?
March 25, 2021The future of Money is in Decentralized Finance: DeFi and digital currencies can make the world a…
THE COEXISTENCE OF MONEY WITH DIGITAL CURRENCIES, BUSINESS CYCLES, AND REGIONAL DIGITAL MONETARY AREAS.Since I started analyzing Bitcoin, cryptocurrencies, blockchain technologies and more generally decentralized finance (DeFi), I have always discussed different economic thinking based on a new way to watch money and the contemporary monetary systems. Over time, I have always believed that the rise of these innovations would have made the world a better place.Despite the mainstream criticism of most financial institutions continues today, I am still convinced that decentralized finance, Bitcoin, and some digital currencies have already shown huge innovations and spectacular changes in our society. Of course, we are just on the way to change the world, but the extraction of value from Blockchain technologies and the rise of decentralized finance have already started.DeFi comes out from the basic features of Blockchain automated transactions and protocols and can transfer value to more complex uses by innovating the old financial system with no end. Essentially, it can produce a variety of financial applications with zero intermediaries but with full control of operations beyond the automated transactions. These innovations which already work are new peer-to-peer forms of lending, powerful trading platforms and decentralized exchanges, new global payment tools, alternative forms of crowdfunding to address different allocations of capital and credit such as yield, savings, and liquidity mining applications.Furthermore, DeFi has a fundamental feature that is its ‘composability’. In other words, it is an open source that can be used to generate new apps and new financial products with full control over the transactions.Finally, DeFi means also stablecoins that are digital currencies tied to one or a basket of assets such as Fiat currencies or exchange — traded commodities or any other asset. They are designed to stabilize the price of any digital coin with huge benefits for the…
