DeFi has come a long way in the past decade- exponentially so in the past couple years alone. It’s an idea as old as the internet itself that’s coming to fruition in a variety of ways. Cryptocurrency, Smart Contracts, NFTs, decentralization, staking, yield farming, energy independence… oh how far this market reaches!
So many networks, each bringing their own niche to the game in this widespread, competitive atmosphere. One has to ask, are all these networks going to survive in the long run? How many are scams? How many will play a role in economic function in years to come? Which ones will survive and why? How many cryptocurrencies do we really need?
There will be a point where the money making from trading fiat into these currencies will be no more. The goal, of course, for cryptocurrency is to get away from centralized fiat currencies. Coming sooner than later is a time where cryptocurrency will be the new exchangeable form of money. But which one(s)?
Some say only Bitcoin is necessary. Others say XRP, others Ethereum. So on, and so on. Over 10,000 projects out there; it seems as though a good lot will be tossed by the wayside- but that may not be the case for all.
Crypto currency is very community based. Decentralization brings variety, and if a network can be deemed valuable by a decent number of people, will it continue to show value when competition takes the reins on the world economy?
Will we only need one? Some would say so- but even if one was seen as ‘the one’, would it end up being a reserve currency like the USD is today? Or will there be one network to shut them all out?
The future is uncertain. There are many projects out there that can make the world go round in a decentralized manner. They all bring efficiency, speed, security and scalability to the table. Some are deemed more reliable than others, however.
The point here is, there is a competitive scenario going on right now with these currencies. Or is there? It seems that they’re all like a money-transferring service network that we can invest in. But they were all created to be the new way of information, data and money transfer. They all set out on the mission to change the world. Which ones are going to do it? Only time will tell, but the possibilities are open. They could all play their role, or the greater majority could fall off the face of the earth. We shall see!
Written by SMH from ofthefreemarket.com on May 22, 2022