It is the moment of DeFi in the crypto world, and this seems to be understood by the main analysts of the market. Well, although it is not yet clear what will be the result of this fever for decentralized finance. The truth is that, until now, they have managed to convince thousands of people to invest their money in this new method of financing. Therefore, analyst Scott Melker comments in the Tweet of the day, that DeFi returns to users capabilities stolen by traditional banking.
DeFi vs. traditional banking
For a long time, finances organized around traditional banking have been the engine for the growth of the economy around the world. Allowing capital to finance commercial, industrial and agricultural projects. Which opened the doors to the period of greatest prosperity known in the history of mankind.
However, this model has its limits. Well, although it allowed the participation of the general population in the economy. It also led to the financial exclusion of billions of unbanked people. And therefore, without the possibility of obtaining financing of any kind for their productive projects. A great limitation that the DeFi have exposed.
And, unlike traditional banking, DeFi allows the massive participation of users around the world, without the need to have a bank account. Which, for analysts like Scott Melker, is allowing unleashed productive forces hidden until now for the financial system. In the form of billions of dollars put into major decentralized finance projects around the world:
«If digging deeper into DeFi has taught me anything, it’s that traditional banking is an epic scam and they’re stealing all potential performance from their customers.«.
In this way, Scott Melker directly points out the weaknesses of the bank. Showing their confidence that the DeFi will allow to release benefits that until now have been trapped in the financial system, to put them directly in the hands of users.