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Why DeFi Isn't Bullshit

10 pointsby bhalinaabout 3 years ago

1 comment

smoldesuabout 3 years ago
I&#x27;m trying not to be too rude here, but this reads like Baby&#x27;s First Crypto Article. Every reason they&#x27;ve listed here has been discussed to death and refuted by most people &quot;in the know&quot; so to speak.<p>- Self-custody is being dismantled by regulators, and the people who <i>do</i> cater to self-custody are selling P2P which is far too inconvenient for the average person.<p>- Interest rates are higher, but gas fees are even worse if you want to push an L1 transaction (L2 transactions undermine your security&#x2F;decentralization&#x2F;transparency benefits).<p>- Modern DeFi is hardly transparent, and the parts that <i>are</i> visible have only proven useful to speculative investors and law enforcement agencies.<p>- Sure it <i>might</i> go beyond investment, but what examples can we point to? The dumpster fire of NFTs? The Wild-West world of crypto loans? I&#x27;ve been watching for nearly 8 years now, and nothing has come up.<p>- The whole &quot;distributed&quot; nature of these systems is definitely nerd porn, but the general public doesn&#x27;t care. On top of that, there&#x27;s really no benefit to decentralizing a currency that will be treated and handled like a regulated asset when all is said and done, so the only &quot;benefit&quot; is that we&#x27;re now using hundreds of times more computation&#x2F;energy&#x2F;time to process and verify individual transactions. It was cool in 2012. Today it&#x27;s just a burden.<p>I&#x27;m someone who likes crypto. I think it&#x27;s cool, and while there might not be a finance revolution in the next decade, I think there&#x27;s a great deal of problems that could be solved with decentralized fiat. Every argument here is terrible, though. This article is all hype and no substance, like it was written by a Bitcoin maxi from 2012 who just woke up from cryosleep stasis to defend their favorite currency.<p>Oh, and towards the bottom it&#x27;s sponsored by a blockchain API company. Go figure.
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