A popular crypto analyst and influencer says he believes Satoshi Nakamoto, the anonymous Bitcoin creator, would be impressed with decentralized finance (DeFi).
The host of YouTube’s Crypto Daily, who goes by his first name Cameron, says despite derogatory comparisons, DeFi is far from the defunct Bitconnect project – which was a Bitcoin lending and exchange platform that promised high yields to investors.
“It’s easy to say something new and scary is just a Ponzi because you fear what you don’t understand, but putting your money to work to earn transaction fees instead of sitting idle is not just another Bitconnect, and you are doing yourself a disservice in thinking so.”
Cameron says DeFi’s revenue models empower crypto holders by putting their capital to work, the way exchanges and banks do behind-the-scenes.
“If you like to stack sats, you can stack more sats by wrapping your Bitcoin onto Ethereum and putting it to work. I know that might be very painful to hear for die-hard maximalists, but what do you think banks are doing with your money? Do they just sit on top of it all? No, they put it to work. Why are we not allowed to do the same? Why are we not allowed to be our own banks? Isn’t that the whole point?”
Cameron says the emerging DeFi scene actually upholds many of the ideals held by Satoshi Nakamoto, and will boost the price and usability of both BTC and Ethereum in the long run.
“Bitcoin is decentralized finance. It started all of this. I can only imagine Satoshi himself would be impressed that we are replicating more of what banks already do and which can be done on top of and all within Bitcoin in hopefully not too distant future.”
As for crypto exchanges, which represent the traditional way coins are bought and sold, Cameron says they will have to play catch-up in order to prevent their decentralized counterparts from taking over.
“[Exchanges] need to offer us a better deal, or we will just do it ourselves. We don’t need them anymore. I actually can’t believe it’s taken crypto this long to start doing this. All this money involved, all these years of development, and this is what we have to show for it. We earn money by a coin going up. Wouldn’t you rather these coins generate some value too? I expect even more, to be honest. You should expect even more!”