Bitcoin (BTC) and cryptocurrencies could be adopted by the general population due to increased use of decentralized finance and collateralized services.
According to the Bitcoin maximalist Max Keiser, Bitcoin is still a collectable and a store of value. However, it could become a medium of exchange or unit of account in the future.
Decentralized Finance and Collateralization
The cryptocurrency space has been expanding throughout the last few years. There have been several projects and trends that attracted the attention of investors in the crypto market.
Decentralized finance and collateralized services have been part of the growing interest in digital assets during the last few years.
Mr. Keiser commented about how Bitcoin is currently used:
“Bitcoin is still between a collectable and a store of value. It’s getting to a point where it will be considered a medium of exchange or a unit of account.”
He has also hinted that Bitcoin adoption could grow with collateralized services in the cryptocurrency space. This is opposed to what many individuals and enthusiasts believe that Bitcoin could be used as a means of payment through commercial use cases.
Regarding decentralized finance, there are several solutions in the market that are already helping users to take loans in a decentralized manner.
According to DefiPulse, the total value of USD locked in decentralized finance is reaching new highs. At the moment, there are $680.1 million locked with MakerDAO being the largest DeFi solution with a dominance of 48.86% and $332.3 million locked.
Other solutions in the market include Compound, Synthetics, InstaDapp and dYdX, among others.
If these DeFi solutions continue to grow and expand in the market, there will eventually be an increased demand for Bitcoin as well. This is taking into account the fact that Bitcoin is the oldest cryptocurrency in the market and the most established one.
Bitcoin has very high liquidity and there are many companies around the world already working with it.
Kaiser explained that the U.S. economy is also in a very bad situation explaining that Obama printed $17 trillion dollars to bail the bankers out.
On the matter, he commented:
“The U.S. dollar cannot compete with gold and people will realize that it cannot compete with Bitcoin either.”
Although gold is considered to be a store of value all over the world, Bitcoin wants to become one in the future. Until now, its volatile price doesn’t allow it to be an established store of value, but things can change in the future.