Welcome to the 21st century! No flying cars yet but banks all over the world can get away with charging you money for giving them money.
The future is now!
You are not wrong to expect some progress, though. There is a new type of money that is decoupled from financial institutions and totally community driven. It's not anarchy, I swear! It's not just winner-take-all and scams, either. No, it is a concept that wants to give everyone incentives to contribute in a positive way. You know, kind of like back when money was invented as a denominator of society's limited resources, waiting to be distributed to whoever was willing and able to use these resources for the good of all...
Can Crypto avoid the mistakes made along the way of previous types of currency? Will the Crypto debt market create fair wealth for all Netizens across the world or will DeFi collapse under the weight of human greed like traditional finance? Well, that is up to all of us.
There are at least 3 things we will need:
1.) Technological innovation that allows Crypto lending to be fast, secure and cheap. The transfer fees must be low for Crypto lending to become financially viable.
2.) Balance. In order to establish Crypto lending, a compromise with the existing forces of the debt market must be reached. The more viable a Crypto lender becomes, the more political action a bank might seek to thwart this upstart competitor. However, Crypto can exist in the financial world of the future together with established banks. Compromise and consensus can be reached on the common ground of trying to make profits. Much of the wealth that is owned in the old debt market remains valuable. The new Crypto debt market can integrate and add its new values.
3.) Fairplay. In order to make Crypto lending attractive, there must be fair play for all. Many different models can suit many different types of P2P lenders and borrowers. What is most important, however, is that everyone knows the respective rulebook. You can make a quick profit by scamming a bunch of people once but that damages the reputation of the whole market and prevents regular profits and fair exchanges in the future.
If Crypto lending can adhere to these 3 principles, then I am utterly certain that it can make global finance better for everyone involved.
