One thing that sets crypto apart from the traditional finance system is that access to protocols and assets are not limited above borders of the services region of operations. In fact, the nature of blockchains makes it increasingly difficult to have "border limitations" as though the network itself is hosted across different countries of the world.
The benefits of this is that it allows the economy of any project or ecosystem to expand limitlessly, this is something on the reverse for economies of nations of the world as though productivity and economic growth for individual nations happens be a competition, as such, deliberately, these economies are not interoperable by products or services, making it hugely disadvantaged as value flow is restricted by the need to compete rather than create global value markets.
Crypto is changing the definition of finance, money, economy, the nature of investing is also changing. With crypto, money is an asset, as opposed to being a liability in the traditional system of finance. Crypto is generally an attempt to detach from the debt based system and build an expansive value transfer ecosystem limited by nothing. I know this because the way tokens work is incredibly different from how fiat systems work. With fiat, you're mostly robbed, with crypto it's often 50/50 in terms of risks and rewards.
Crypto lending and borrowing
I'm sure this has been discussed a couple of times by others, mostly from different angles, in fact, xpolycub lending and borrowing feature was my most anticipated feature, whether or not it's still in the works is unknown to me, however, given that most conversations about lending and borrowing on Hive have mostly been theoretical like those explored in a concept termed the Hive Financial Network, it would be cool and a massive step forward for the Hive ecosystem to have such services up and running.
Decentralized finance smart investments makes it impossible for anyone to stay broke, it becomes a choice to ignore the opportunities built into these products and services. Lending and borrowing is a superpower, it practically aids anyone do two things:
-Save
-Invest, at the same time.
In a traditional system of finance, this is practically not possible, usually a collateral in this field of business is often a physical property, not a secondary currency, so the idea of "saving" is out of the picture.
Crypto solves this with DeFi borrowing and lending. Let's say you wish to invest in a new crypto project you see great potential in but you don't want to sell your bitcoins, which you've been accumulating for years. With DeFi lending and borrowing, there's then an option to move this value to a third party, in exchange for funds to make that new purchase.
So in essence, your bitcoin is saved, and now you have new currencies to invest. So while you're obviously waiting to get rich on bitcoin, you're also waiting to get rich on the new coin invested in, all while initially owning only 50% of the value of investment you now control. One thing with this practice is that you can repeat the process over and over depending on the value controlled by you and your ability to support your margin and keep it far from liquidation.
For some, even if you don't wish to keep repeating the process, with the numerous investment products in DeFi , this system allows you to earn three times more. First, your bitcoin wealth, second, your new investment wealth upon "potential" project growth while also having the option to earn yield on the new investment asset via DeFi protocols that pay incentives to liquidity providers or for staking tokens over a specified period of time.
Posted Using LeoFinance Beta
