There has been a lot of news of Ethereum and Decentralized finance (DeFi) lately, but Bitcoin is now coming into play. Ethereum is the first platform that deployed DeFi to carry out financial systems around the world.
So far, most people associate DeFi with Ethereum, but BTC has jumped on the DeFi bandwagon. You can now put your BTC to work on a decentralized and secure financial app.
Bitcoin is the most popular and most used cryptocurrency in the world today. In fact, it appears to be the safest network and the virtual currency with the highest liquidity rate. Bitcoin dominates the cryptocurrency market and has a market share of about 66%. This is why Decentralized Finance for Bitcoin would lay a seamless foundation for the present and future financial system.
What is DeFi for Bitcoin?
As you might know, DeFi is an acronym for Decentralized Finance. It allows Bitcoin users to lend, borrow, trade, and earn interest on their investments. A central body governs the traditional financial sector, and it has a lot of restrictions and disadvantages.
There is not so much transparency, you do not have to say much about your money, and financial services are not available in remote locations. Decentralized finance has come to stay, and it promises to correct all the limitations associated with traditional financial systems.
Decentralized Finance is the Future
Users can take back control of their money with DeFI and BTC. The DeFi sector promises a financial revolution like never seen before. It offers better security, more privacy, uncensorable, and helps people access financial services better. Today people are not in full control of their BTC once they send it to a custodial wallet.
Although, introducing decentralized finance to Bitcoin promises to correct this flaw. It gives you the power to determine your interest rate when you give out a loan through Smart Contracts. It also ensures that a custodian does not hold your BTC.
Putting you bitcoin to work through Decentralized finance
Decentralized Finance applications create a lot of opportunities for BTC holders. Some of them are as follows:
- Enables you to earn interest on your Bitcoin.
- Allows Bitcoin holders to borrow stablecoins and unlock the value without the need to sell.
- Leverage trade and explore the crypto market to earn more.
- Allows bitcoin holders to stake their Bitcoin against other cryptocurrencies and tokens.
- Manage your bitcoin without a custodian.
Ethereum is clearly where DeFi action is currently. It has taken the lead, and today there are thousands of Ethereum projects that run on DeFi. However, the BTC deployment of DeFi in its native environment is gradually coming to the limelight. It provides an inclusive, fairer, and more transparent financial system without the need for an intermediary.