The year 2020, was nicknamed the DeFi Summer. Indeed, it was a time frame that saw a massive increase of the decentralized finance products and services. It moved from mere millions of dollars to $20 billion, all within months amidst the COVID-19 pandemic.
What is It and Why Is Mark Cuban Interested?
Recall that Decentralized Finance is the independent operation of finances without relying on traditional middlemen like banks and insurance funds. DeFi allows its users to perform various financial activities like invest, save, deposit, transfer cryptocurrencies, and digital assets without needing the service of a middle man.
That is an enormous value overall.
The growth of DeFi cannot be completed without the honorable mention Satoshi and Bitcoin. Further, the launch of Ethereum in 2015 gained the attraction of those who have significant interest in the decentralized programs and games that range from crypto kitties to other ones that are not as popular.
The Various Types of Assets
In an interview, Mark Cuban was quoted saying something along the lines of the fact that you will notice that there are more of these NFT items out on the market.
It is not so much about just about how much is sold and the and current prices but the fact people are flocking to these assets and purchasing them. He saw the potential and has great trust in DeFi’s power and value in the years to come.
The advancement of DeFi, apart from being attributed to native cryptocurrencies, shows it is a link between blockchain and the traditional finance worlds. For instance, various assets and systems allows its users to borrow money without the need to lock assets up. That is interesting as it means that it does not have to collateral oriented.
The Recent Obsession Will Thrive Over The Next Decade
The recent obsession with Defi sees the rise of independent finance and the removal of regulators. Indeed, there are no governing bodies to rule over your financial rights. That is a boon to many people within the world today.
Further, significant asset management funds and famous financial institutions have seen the benefits of DeFi and have started accepting it and are getting actively involved. DeFi developers are actively working to build new innovative programs to increase the participation level for new DeFi users.
It is likely that more people will get involved as this is a global phenomenon.