If I get out in my town asking people around what blockchain technology is, most of them will answer that they haven't heard of it on TV, and they're right, as most of the inhabitants of this planet are educated by the media. I'm living quite a generous portion of my life on a blockchain on a daily basis and so are you, but we're still the minority.
That won't last for too long as blockchain technology and DEFI seem to be eating the world of finance's lunch lately. Just a few days have passed since the WSB saga occurred and there are already plenty of stocks traders leaving Robin Hood and Wall Street behind and getting involved in crypto.
Kraken CEO Reveals 6x Surge in New Users, Says DeFi ‘Eating World of Finance’. Most of you have probably witnessed what happened with DOGE after the GME was pumped strong enough and it's clear that quite many of the stocks traders that turned towards crypto are here to stay.
"People that started trading with cryptocurrencies first are shocked to find out how the equities markets actually work, with so many middlemen in the process, not actually owning your stocks, having someone else technically own them, having someone else custody them, not being able to move them wherever you want instantly. t’s a very different system, and I think it’s a system that is really no longer necessary now that we have a crypto system. And I think we’d be much better off with a bare instrument system where people can take their shares, move them anywhere they want, trade them anywhere they want, and trade directly on exchange.”
Jesse Powell, chief executive of crypto exchange Kraken source
DEFI and DEXs are right on spot when thinking of alternatives to traditional financial systems and Wall Street of course. No wonder so many DEX coins and DEFI related ones, such as UNI, SUSHI and others are pumping lately. They're probably that disruptive piece from the puzzle that we've been talking around here for years. I mean, who would want to be still using Robinhood and banks and all sort of trading methods that we currently have in the traditional financial systems, after you take notice of the alternative and when you can know you could send millions overseas in crypto for a few bucks in fees, swap tokens between each other in seconds with no middle men needed, lend, get interest and so on.
It might be a bit hard to digest all of that for the newcomer in crypto, and not even I have yet come to fully understand the world of DEFI, but that's what Leofinance's for, right. I was just a kid when the dotcom bubble occurred and don't know too much datils about it, but this crypto revolution might replicate it to some extent.
It's revolutionary, no doubt about that, it had its hype cycle when every shitcoin was so overvalued during the 2017 bull market, but triage seems to be in full swing now. Projects that really have a use case are getting traction and recognition and this crypto world is becoming more and more palpable. You can still have your pump and dump schemes once in a while like with DOGE and XRP lately, but at the end of the day the substantial growth is to be recorded by real life working projects.
It was said a few months ago that this bull market will be driven by institutions, and not the retail like it happened in 2017, but it starts to look like that's not that clear anymore. The institutions have clearly triggered a massive rally for BTC, but we now see retail flooding crypto exchanges with registering their new accounts. Binance has also suffered from shortages this morning so the migration process is clear.
Indirectly, financial institutions have pushed retail towards crypto, as this WSB people's revolution or rebellion being a clear example of that, but we can't say that they're pushing much of the bags uphill. It's a mixed effort taking place and the individual still has a word to say. We've just entered the second month of this year and it's clear that 2021 will be very wild in terms of price swings but constructive at the same time. Aside from financial gains, 2021 will take crypto to another level making use of its use case more and more.
"Ethereum gives you access to a whole world of decentralized smart contracts, decentralized exchanges, lending protocols. DeFi is really eating the world of finance, whether people know it or not yet. I think 10 years from now, we’re all going to be doing 90% of our financial services on a blockchain.”
Jesse Powell, chief executive of crypto exchange Kraken, source
Hope you're having a great day and haven't lost too much money on XRP's pump and dump today and see you to the next one.
Thanks for attention,
Adrian
