The state of DeFi
In todays blog I'm going to cover a topic we've covered before but now I'm covering on it's state and how it's doing right now. So much has been happening in the cryptocurrency market recently that has been on the mainstream news. Which is something I cover in one of my previous blog post you can read using the link. But now we are going to cover the DeFi world and it's future. Before we get into the blog I just want to say this is speculation and based off of current events so don't take my predictions as facts. Let's now get into todays special blog post.
The state of DeFi as of now
As of now DeFi's future is in a confusing and unknown state. That's because of recent legislation that's going through the united states congress right now. As part of a infrastructure deal that's going through the U.S government right now. Previously they tried to regulate crypto and DeFi but couldn't settle on some definitions that needed some more explanation to them in the congressional sessions. But recently there has been some more provisions added to the bill in another attempt to regulate crypto and specifically DeFi exchanges and cryptocurrencies. The provisions they've added to the bill are in fact harmful to the development of DeFi and just cryptocurrency in general. If they can pass this law our futures can be very different from how the state of things are now. Which leads us to our next topic of discussion.
The state of DeFi for the near future
Now I'm going to help paint the imagine of what our future can look like from the near future to the far future. What we're going to discuss now however is the near future of DeFi. So when I say near future what I mean is within this decade. But if this law passes we could see less interest from the us public and us retail investors into DeFI and most likely DeFi in general. The reason for this is because the new law would make anyone using a DeFi exchange a felon. So if you use an exchange that doesn't use I.Ds to verify users or ask for a tax form or a social security number you could end up in prison. On top of all that if the US which is the biggest country in comparison to the others in investing money regulates and forbids DeFi I believe either the rest of world will follow or we'll have a world where how today we have tax havens and we have countries with minimum tax rates. But where instead of taxes rates it's replaced with DeFi and no DeFi or heavily regulated DeFi. Not saying this bill could kill off DeFi but it might slow it down for a short time or kill all the buzz around it for now. But this like i said is only temporary if they actually go through with this the far future could be looking a lot more bright.
The state of DeFi In the far future
The far future of the state of cryptocurrency however looks a lot better then our near future. There are many reasons for this to happen. One is that once the law is more clear on DeFi and crypto I believe that the investors will return. This is because if they can define who's a broker and all these definitions then the rules of the market are clear. Which brings more clarity to the market which brings in more big time and big money investors. Second is once the whales and big money investors come then that's when the rest of the public follows and retail investors get involved. DeFi could also be banned to oblivion and the American public can never invest or use these exchanges which could lead to DeFi never hitting it's true potential. The future of DeFi and crypto really is depending on this infrastructure bill.
My Final Words
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