Decoding DeFi for the Everyday Investor
Sergej Kunz, co-founder of the DeFi protocol 1inch Network, recently shared his insights on decentralized finance during his engaging conversation with Cointelegraph’s Joseph Hall at Paris Blockchain Week 2023. The focus? Demystifying the world of DeFi for the ordinary investor who often feels like they’re navigating a complex maze without a map.
The Financial Limitation Dilemma
People want a secure investment space, but Kunz highlights the significant constraints facing regular folks. He shared a revelation from his own experiences, stating, “Right now, you are very limited as a person, a normal person out there.” For instance, he had to reach out to his local German bank to inquire about investment options for his daughter, only to find that they couldn’t even offer basic bonds!
- Investing options are often scarce for the average person.
- Even traditional products, like bonds, can be hard to obtain.
Perceptions of Crypto: More Than Meets the Eye
Kunz explained that while crypto is often viewed as merely a platform for buying and selling assets, there’s a broader horizon. He remarks, “We have a decentralized computer around the globe” that allows countless applications to run in a permissionless ecosystem. It’s akin to having an unlimited toolbox where the only limit is your creativity.
Mass Adoption: The Road Ahead
One of the hot topics in the conversation was mass adoption. For Kunz, it’s all about understanding and education. He passionately stated the need for people to grasp noncustodial setups and simple payment methods, suggesting that when a person can pay for coffee by simply scanning a QR code with Ethereum, we’ll know that real progress has been made.
“As soon as we have people who understand the noncustodial way… then, we achieved mass adoption from our point of view.”
Advice for Newcomers: Trust, But Verify
To wrap up this insightful chat, Kunz offered sage advice to newcomers venturing into the DeFi waters: “don’t trust anyone. If someone tries to sell you anything, don’t trust; verify.” It’s a reminder that knowledge is power—so, read up, stay informed, and don’t dive into investments without being well-equipped!
