Why Decentralized Finance Is Going To Overtake Banking

avatar

The likes of JPMorgan and Bank of America better watch out. We are entering the phase of their potential demise.

image.png
Source

To be clear, this is not going to happen next week or month. In fact, this is years down the road. However, in 5-10 years, it is likely these institutions have a major problem.

While this might seem absurd to many, we need to look no further than the Internet for the lessons. It was mocked, laughed at, and totally misunderstood to start.

Take a look at this clip of Bill Gates on David Letterman in the mid 1990s.

Which one was correct?

Present State of Banking

There is a problem that these major banks face. Here is what the present state of banking looks like.

  • Slow
  • Inefficient
  • Really Expensive

In short, the opportunity exists for something to come along and disrupt it. When an industry lags so much, it is susceptible to being overtaken. That is exactly what we see with decentralized finance.

There is another issue with the banking system. You ever hear of "banker's hours"? Just like Gates mentioned with the baseball game, on the Internet one can listen to it at anytime. With the radio, fans had to tune in when the broadcast was taking place.

Notice the similarity with banking. We can only operate when these institutions desire. For example, with stocks, can you trade them any hour of the day like on DeFi platforms? We all know the answer to that.

The present financial system is outdated. Hence it is primed to be replaced.

Disruption Comes From Outside

Is Blockbuster the leading streaming company? Did Kodak dominate the digital camera market? Is the leading EV company one of the traditional automakers?

The answer to all is no. This is common in the technology arena. Rarely are the incumbents the ones who end up bringing about revolutionary changes. Instead, it is something outside the industry that enters.

We know this is the case because the present way of doing things opens the door. Since the company(s) that are dominating like what is taking place, they are leery of changing. Their embracing of risk is not high. They will opt to maintain the status quo.

This is exactly where the banking system is at right now. It is not looking to massively overhaul the industry. The likes of JPMorgan and Bank of America are doing very well as things are.

We are seeing something that is akin to the digital camera and steaming video services, just much bigger. This is going to affect billions around the world and radically alter many facets of society.

Not surprisingly, none of this is happening inside the banking system. In fact, it is not really within the financial system.

Decentralized Finance (DeFi) is:

  • Faster
  • More Efficient
  • Inexpensive
  • Inclusive

Simply put, it is a much better system. History shows us that something which meets the needs on this list will end up winning. There is no way consumers are going to opt for something that was characterized on the first list.

The attention that is starting to be generated around cryptocurrency and DeFi is going to propel things forward. While the best technology does not always get adopted, when there is massive hype, it stands a good chance of entering mainstream consciousness.

This is what we are going to see with DeFi. And this should make the bankers very worried.

Article by @taskmaster4450le.

Posted Using LeoFinance Beta



0
0
0.000
18 comments
avatar

Less than five years I think. Things are going faster nowadays. In global, world is accelerating ...😎

0
0
0.000
avatar

You know, the way you lay these things out makes it seem like a no-brainer. It's inevitable. You really have a great talent/ability to take extremely large concepts and pare them down into common sense ideas that everyone can understand.

Seriously, another very well written post, Mr taskmaster. I don't care what @jongolson says, you're pretty smart. lol

Water flows downhill and follows the path of least resistance. Money is no different. As you say, Defi is just cheaper, faster, more efficient, and everyone can participate. The only thing it lacks right now is safety/security and that's coming. But even with that, the risk/reward levels are high enough that most people can afford to take those risks and still come out way ahead of where the banking system puts them.

Defi will be the end of the personal income tax at some point. Governments are FINALLY going to have to realize that a consumption tax is the only way they're going to get their money. There, another idea for you to run with. :-) I'm sure you'll do a much better job with it than I would.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Ah I am use to it. He is both the brains and the looks of the operation.

Alas, I do the best I can with what I got.

Posted Using LeoFinance Beta

0
0
0.000
avatar

and its international, literally you could send money to anyone, thats one of the things that I like the most

Posted Using LeoFinance Beta

0
0
0.000
avatar

The banks were already getting crushed by the fintech companies like Paypal. The transfer of money on that end is much better and it's why people like to use it. The only thing they are missing is the actual banking system for yield and I think Defi is a great solution for it.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Interesting read. This is inevitable. It's only a matter of time. This should happen in a couple of years


Posted via proofofbrain.io

0
0
0.000
avatar

Insightful as always, love that clip and how it puts things in perspective. I do think it has a long way to go but in time it has a good chance of making this happen.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Quality post with quality keywords and structure.

Great work on this one, Task!

Not to mention how normal crypto and decentralised finance is for young people.

As they get older, they have a choice to hand over control to the establishment, or retain full control with DeFi.

What do you think they're going to choose?

Posted Using LeoFinance Beta

0
0
0.000
avatar

Being in the process of moving most of my finances away from one of the big banks right now, I can totally understand this. I am really glad that I got involved in CUB finance. I think it is going to set me up really well for that time five years down the road when these big shake-ups start happening.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Yeah a pain in the hindend to deal with.

I like Cubfinance and believe there is a great future there for my CUBBIES.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Looking forward to see the banksters suffer and squirm :)

0
0
0.000
avatar

Tortured is my preference but then I get carried away with things at times.

Posted Using LeoFinance Beta

0
0
0.000
avatar

we can set up a banskter gulag on Hive island if you want, and you can " have your way with them" in there :)))

0
0
0.000
avatar

To deny the fact that traditional banking system is fading in the lives of people is to deceive oneself. Who will want to deal with a system whereby one will have to queue up to make transaction and yet wait for longer time for the transaction to be processed ?, Who won't want a decentralized system where he has full control of his funds ?


Posted via proofofbrain.io

0
0
0.000
avatar

I am now confronted with DeFi since the WLEO token and the time since then has been more diverse and fascinating then my entire years in crypto before that.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Bitcoin has already taken over the banking system when it was created. Decentralized cryptocurrencies are the future. we have financial freedom with a decentralized system.

Posted Using LeoFinance Beta

0
0
0.000