The Decentralized Finance craze and how it transforms the lives of the common people, including the unbanked
As technology improves, it also changes people’s lives by opening many doors and helping them discover new income opportunities. However, the increasingly challenging and competitive climate drives people to take notice of cryptocurrency, culminating in a global trend. So today, we’ll look at how cryptocurrency, particularly DeFi, is trending and how it might improve people’s lives, including those who are unbanked.
Before that, we can also look back at why people decided to invest in blockchain technology and how the great depression changed the way people see crypto.
The Great Depression’s impact on Crypto Nation
Despite how negative people interpret the term ‘great depression,’ crypto enthusiasts see it as an opportunity. How? To a certain extent, the ability to trade cryptocurrencies from anywhere globally helps reduce the need for government restrictions on trading activities, provided those regulations are implemented throughout a market restriction. Because of this, cryptocurrencies have become more appealing than traditional financial instruments.
In addition, investors would opt to transfer their investments to the decentralized crypto market in a crisis. This could reduce the risks of central banks or political players influencing the market. More or less, because they are not under the direct control of a major institution, cryptocurrencies can serve as political hedges and, as a result, be more attractive to investors.
Hence, the great depression made blockchain technology more popular and catalyzed the crypto prices to skyrocket. It also made DeFi projects such as NFTs trend, and provided fortune to most people, especially the unbanked ones. Who are these “not bank qualified,” though?
The unbanked and how crypto can transform their lives
The unbanked are adults who do not have their own bank accounts. Most of the time, they cannot open a bank account because they lack the necessary credentials, such as lousy credit score, no previous transactions, and the like. If they need cash, the unbanked might take the risk of negotiating with loan sharks and will be on their way to greater debt rather than towards financial freedom.
How does DeFi bridge the gap? Several trading and lending platforms and smart chains today allow users to loan cryptocurrencies at a favorable interest with corresponding collateral. This innovation is such a revolution to finance. It will enable people to loan in crypto and trade it into fiat money that they can use to start up their businesses or for whatever purpose they intend to use it. Moreover, lending in crypto does not ask a lot of requirements, just a valid ID.
Even opening a savings account in a bank requires paperwork, and on top of that, some even require a high maintaining balance but offer a meager P.A. interest. The crypto developers noticed these problems and became the reason why DeFi projects trend these days. The current economic situation made people look for investment, yet goods and services’ prices increase drastically.
More companies are adopting
With the increasing usage of crypto, big companies that operate worldwide such as Starbucks, Etsy, Rakuten, and more, have started to accept crypto as their form of payment. With this gradual adoption, the world is slowly embracing crypto as a financial option. This is the same concept the PrivacySwap is looking forward to. The company aims to create a more seamless transaction between traditional and DeFi, and vice versa. Moreover, this will revolutionize and lessen the third parties that add extra costs to the purchased services or goods.
Cybersecurity professionals also envision elevating privacy and security in both traditional and decentralized finance ecosystems.
“We are Cybersecurity Professionals who work as Data Protection Officers for over 200 businesses around the world. We live and breathe cybersecurity and confidentiality. It’s in our blood.”- PrivacySwap.Finance
Alongside that, the platform also aims to educate and enlighten everyone about the never-ending possibility the whole blockchain technology could offer and will later modernize the world’s finance.
Crypto has changed the lives of many, transforming them into something better. Companies started to turn their attention to the increasing number of crypto users and saw it as an opportunity to engage with such digital currency.
More so, prominent personalities also show their engagement with DeFi projects such as NFT and bragged how much they earned from cryptos. At the end of the day, it is still inevitable where crypto could bring you. However, as the market still shows a very pleasing image and favorable results, it is good to start learning more about DeFi and crypto and begin engaging in them in these early days.
Platforms such as PrivacySwap can help you become successful with crypto and turn your hesitations into knowledge as they also offer DeFi classes with interactive and engaging audiences. The platform visualizes how great it is to see the future of finance with blockchain, so it is incredible to start engaging with them now.