Ethereum and the DeFi economy: an introduction

Ethereum is the beating heart of the decentralized DeFi economy, an economy still in its infancy but with immense potential to change the world of finance.

By the SpyStocks desk · 4y ago · 2 min read

ETHEREUM -

(Part 1) I assume that as stock market investors, you have all been exposed to the world of digital currencies - "the crypto world".

The highest-valued currency today is Bitcoin, currently worth $46,510.

The second largest currency, much discussed, is Ethereum, currently priced at $3,350.

Ethereum is the beating heart of the crypto economy - a large economy called "DeFi".

DeFi is a decentralized economy currently worth only $75 billion - and it is truly in its infancy.

This is the economy of the future that takes everything we know from our lives into the wonderful decentralized world.

Loans – without gender discrimination, pay stubs, or a third party taking cuts.

Savings – with interest rates that ordinary people are unfamiliar with. We are talking about tens of percent per year as passive income, and what's funny about the whole story is that even banks in the US and Europe are already embracing Ethereum.

Although in trickles, this pace will gradually accelerate, in my opinion.

Banks that pay meager interest rates to their customers are already anticipating the future; they simply understand that there is no real way from the fiat world that they can compete with this economy. Interest rates on digital dollars today range from 4-8% annually - and in certain situations, even more.

Continued in the next post:

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