Does the world need crypto? 123 – Part 3: DeFi to the rescue? - Crypto in Plain English - Episode 123 - by cryptohunt.it

Does the world need crypto? 123 – Part 3: DeFi to the rescue?

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Let’s continue our mini-series on: Does the world need crypto? This is part 3, so make sure you start from the beginning.

In the past two episodes, we've discussed how anger about banks and governments started the crypto trend. Yet, crypto hasn't gone mainstream and Bitcoin itself has become what it wanted to prevent in the first place: Another speculative asset with zero consumer protection.

But Bitcoin can also be seen as an outdated proof-of-concept. A great first idea, with as many flaws as promises. But all that changed with Ethereum, which aims to take crypto from just one use – in Bitcoin's case being a payment method – to virtually any finance application you can think of.

So: Is Ethereum finally solving real problems then? Crypto is actually useful?

Arguably, yes, we are seeing some real uses. Stable coins for example, like Tether and USDC. By being pegged to a real currency, they fix the price fluctuation issue of Bitcoin. The complicated logic behind stabilizing them can only exist on a programmable blockchain like Ethereum. And they are being used – Ukraine's call for donations is a great example. While traditional banks are slow and charge high fees to send money across borders, people could suddenly help quickly and efficiently with crypto.

Other uses exist too, like lending and borrowing money, or using crypto as an alternative to bank accounts. You may not realize this, but most of our world is "underbanked", meaning people don't have fair access to bank accounts and stable currencies, making their life a mix of uncertainty and high fees. Crypto projects like Celo are already in wide use there, leapfrogging inefficient governments or traditional finance systems.

You see: The world does need crypto. Slowly, the technology is catching up with real needs. It just took a really, really long time. And suddenly, does it seem unrealistic that Visa and Mastercard will also be disrupted by crypto?

But we are not there yet. Even Ethereum and many others are flawed. So, tomorrow we'll look into what makes a perfect blockchain, one that could disrupt them all.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.