What is Regenerative Finance (ReFi)? - Crypto in Plain English - Episode 202 - by cryptohunt.it
Crypto in Plain English - by cryptohunt.it7 Jul 2022

What is Regenerative Finance (ReFi)? - Crypto in Plain English - Episode 202 - by cryptohunt.it

What is Regenerative Finance (ReFi)?

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Today, let's talk about Regenerative Finance and what it has to do with crypto.

The term Regenerative Finance refers to a set of ideas that look at money as a tool to drive positive change rather than something to accumulate.

Let us explain: Traditionally, money in capitalism has always played the role as the ultimate reward, the outcome one strives for. Companies optimize for profits, people for wealth. And that has led to a world where money accumulates with fewer and fewer people, and companies will do anything to make a buck.

Regenerative finance is trying to turn this on its head: Money's job is only to get circulated to achieve something, and the ultimate goal is to create sustainable systems.

Take investing for example. Regenerative Finance investment funds would not invest in a company that makes a lot of money, they would invest in the company that plants the most trees or employs the most people.

Sounds very idealistic? It certainly is a new idea, but that's where crypto comes in. If you want to shape how money gets used, it makes sense to create that money to set incentives. And that's exactly why certain blockchains exist: To use the capital they created to foster outcomes that are non-monetary.

Thanks for taking a step into new ideas with us - and we'll be right back tomorrow!

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.

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