When Cryptocurrencies are in bullish territory, the agenda for ‘what the best form of finance is’ rolls out. Like clockwork, the narratives churn out. “Crypto is the future, Fiat money is dead.” Conversations like this pit the old money against the new money, the long-term wealthy versus the nouveau riche, the Warren Buffets versus the Micheal Saylors.When Traditional Markets analysts raise questions about the intrinsic value of cryptocurrencies and the volatility of these assets, Decentralized Finance investors respond with “Do you want to be right, or do you want to be rich?”As condescending as it sounds, it’s a valid question asked.
Traditional Finance poses as the gatekeeper of the financial environment whose principles rely on fundamentals and ethos is guided by regulations. Traditional money and institutions are far too ingrained into our economic vernacular which supposedly makes them too big to fail. Governments would bail out banks and financial institutions, DeFi does not have such insurance.The stability and dominance of Traditional Finance cannot easily be swept aside by the new, disruptive technology heralded by a Decentralized “economic cult.” The volatility of its value; the vulnerabilities in its infrastructure; and that the fact that the inexperienced could easily be misled by its complexities poses a risk to the financial system.Traditional finance is sacred, Decentralized finance is sacrilegious. That’s why the concept of a Central Bank Digital Currency on a blockchain has no real cheerleaders. You are either in or out. Oil and water don’t mix – only in the Niger Delta.
