Discussions between DeFi and Bitcoin Believers intensifies

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3 years ago

The DeFi financial decentralization tool has been attracting more and more attention within the crypto Market. As its popularization intensifies, new fronts of debate about it start to emerge, especially among Bitcoin defenders.

So, in the latest episode of this conflict, Ark chief investment officer Jeff Dorman countered some criticisms by Morgan Creek Digital's famous Bitcoin investor Anthony Pompliano about DeFi.

Details on Dorman and Pompliano's disagreements

Among the arguments used by Pompliano to challenge DeFi's efficiency is the fact that its liquidity level is much lower than that of the Bitcoin market. This, according to him, makes it much more susceptible to large swings, both positive and negative.

In addition, Anthony also said that using DeFi for financial transactions turns out to be much more dangerous. This is because, according to him, his system ends up being more fragile and therefore prone to hacks and various attacks. Jeff Norman, of course, bleached the arguments.

For him, Pompliano's observations turn out to be incorrect and misinterpreted. Therefore, Dorman stated that the Ark needs to offer counter-arguments to clarify these points. For him, there are different ways to protect his investments, which makes the use of DeFi significantly less dangerous than suggested.

Other defense arguments for DeFi

Dorman was also emphatic in saying that investors who choose DeFi to make their transactions are not exposed to any risk. For this, it is sufficient that certain basic protection precautions are taken. And judging by the increasing appreciation of their tokens, many people are following his advice.

Currently, two of the main tokens linked to DeFi, AAVE and UNI, are already in the ranking of the 20 main cryptocurrencies. In addition, the total value of the volume of transactions involving this platform already totals 36 billion dollars. All of this brings positive perspectives for your future.

A duel of titans

While Bitcoin has broken all trading records, DeFi is moving closer and closer to the powerhouse within the crypto market. And as investors and experts are already used to the debates on BTC and Ethereum, there is an increasing possibility that a new protagonist will be present in this discussion.

In any case, for the time being, Pompliano has not yet commented on the information brought by Dorman. But regardless of what may happen with the direction of this debate, the emergence of DeFi ends up representing an important paradigm shift within the universe of decentralized assets. Now you have to wait and see what this will actually mean for cryptocurrency in general in the future.

DeFi Rating

Put this in mind, to be classified as decentralized finance, DeFi, tokens protocols and assets must follow the following requirements:

  • Use only for financial applications, such as brokerage, issuing synthetic derivatives, or asset management;

  • Open source, that is, anyone can use or develop on other projects without requiring permission from third parties;

  • Use of pseudonyms to use the protocols;

  • Without depending on external facilitators;

  • Decentralized governance, so that decisions and management are not made by a single entity.

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