Bitcoin has been more profitable than DeFi decentralized finance schemes in 2019
It is widely known that the entry of Bitcoin introduced a revolutionary form of traditional finance, to the point that its underlying technology, the Blockchain has proposed new decentralized finance (DeFi) schemes that have proved quite productive and novel.
However, according to the firm, maintaining Bitcoin has been more profitable even than lending money in crypto on the DyDx or Uniswap platforms for example, up to five times more for what they offer return on investment (ROI).
Similarly, the graph shows the superiority in relation to the most important altcoin, Ethereum, over the same period, with 72% more profit than having invested in the second cryptocurrency market at the beginning of the year.
Bitcoin continues to demonstrate with numbers that despite its loss of the five-digit level, it has been profitable so far this year, allowing it to position itself as the cryptographic value reserve par excellence in the cryptocurrency market.
Recently we have seen how the leading cryptocurrency in the market has been compared to Gold and against such well-recognized stock market indices on Wall Street, where its performance has simply been superior, doubling the advantage over traditional assets on most occasions.
DeFi are better alternatives than traditional banks
Decentralized finance and Bitcoin have advanced, especially since the end of 2018 when the bear market seized the crypto scene, bringing the cryptocurrency to a minimum of USD ~ 3,000 in December of that year.
Bitcoin was the pioneer of decentralized space that promised high lucrative returns but with greater risks involved. Its price is very volatile and they have fluctuated more than 40% in a single day this year, so investing in cryptocurrencies forces a lot of market knowledge and wisdom in reading business patterns.
For this reason, a new form of financial platform called decentralized finance (De-Fi) has gained a lot of popularity in the last year and the companies inherent in this scheme have seen a 140% increase in investment since the beginning of 2019, with around USD 655 million in cryptocurrencies blocked in the different DeFi options of the market.
According to DeFiPulse, the amount of Ethereum blocked in DeFi applications reached 3.5 million ETH for the first time last November 10, synonymous with the growth of this new decentralized finance scheme. More and more users have increased the use of DeFi protocols, either to lend, borrow or exchange money with others around the world.
Given the worst condition of the traditional financial ecosystem where several banks have offered negative interest rates, as this situation worsens, people start looking for alternatives, and apart from Bitcoin, DeFi seems to be gaining traction. These platforms offer 5-20 percent interest rates on blocked digital assets, proving to be a lucrative alternative without the need for the applicant to part with their crypto assets.
In addition to the traditional high-risk investment involved in Bitcoin and the rest of the cryptocurrencies, De-Fi platforms have become an excellent option to mitigate risks, obtain good returns and ignore the fraud that generated controversy in many fraudulent schemes. of the popular ICOs in 2017.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.