A Deep Dive into DeFi with DeFi Dad
In episode four of the Hashing It Out podcast, hosted by Cointelegraph’s very own Elisha Owusu Akyaw, we embark on a journey through the captivating world of decentralized finance (DeFi). This time, the special guest is DeFi Dad, a passionate educator and investor from Fourth Revolution Capital (4RC), who has been stirring up waves in the crypto pond since 2017.
The Bull Market Shift: From Setbacks to Success
Although DeFi Dad entered the cryptocurrency realm in 2017, he really found his footing in the tumultuous market post-bull run of early 2018. What could have been a disappointing downturn turned into an opportunity—a chance to pour his energy into the evolving sector of decentralized finance. Let’s be real; his love for DeFi escalated to such heights it might as well have been marked ‘fragile: handle with care.’ This passion even spurred him to develop a series of educational videos aimed at ushering newcomers into the crypto world.
Understanding DeFi: Trustless and Permissionless
During the podcast, DeFi Dad describes decentralized finance in a nutshell: it’s all about applications that are permissionless and operating without the worry of geographic restraints. With a trustless system at its core, decentralized finance separates itself from the centralized applications we’ve become all too familiar with.
- Centralized Platform Example: FTX—this was basically a bank dressed up in crypto clothing that, sadly, didn’t uphold its terms of service.
- DeFi Superiority: In DeFi, users have direct control, making it a much more desirable option when things go sideways.
The Investment Landscape: Gaining Momentum
From an investor’s angle, despite the rocky terrain of the crypto market turbulence, DeFi is showing resilience. DeFi Dad highlighted that his firm has been inundated with pitches from startups looking to carve their niche in the decentralized services space. However, he raised a warning flag: the dwindling capital in the sector might hinder some of these creative vigor bearers from getting off the ground.
A Glimpse into the Future of DeFi
The conversation then turned towards what the future might hold for decentralized finance. DeFi Dad predicts that we will see an explosive increase in economic activity. His optimism extends to estimates suggesting that the total value locked in DeFi could reach a whopping trillion dollars within the next five years—as long as the pitchforks of regulation don’t come knocking first!
Topics Explored in the Episode
Throughout the episode, Elisha and DeFi Dad tackled a battery of intriguing topics:
- The robust Ethereum ecosystem, including the rise of layer-2 platforms
- The diverse use cases of DeFi
- The emergence of real yield that gets investors waking up like, ‘Yay, I’m earning!’
- The looming potential for regulating DeFi platforms in the United States
For those who can’t wait to absorb this knowledge, make sure to listen to the full episode of Hashing It Out available on various platforms like Spotify, Apple Podcasts, and more. Note however, that the opinions shared by DeFi Dad and Elisha are their own and don’t necessarily reflect Cointelegraph’s views. In the volatile world of cryptocurrency, it’s essential to keep your wits about you, and your investments diversified!
