The average price of one bitcoin was approximately 18,000 U.S. dollars in November 2020. Bitcoins are traded on several independent exchanges worldwide and there may be differences in the prices.
The All-Time High price of Bitcoin historically was about US$19,900 in January 2018
DeFi is shorthand for decentralized finance which refers to the use of blockchain, digital assets and smart contracts in financial services such as credit and lending .
According to analytics site Defipulse.com, the $1 billion locked in the markets — i.e. across the spectrum of smart contracts, protocols and decentralized applications (DApps) built on Ethereum — is almost 60% denominated in MakerDAO’s DAI stablecoin.
Defipulse stats reveal that one year ago today, the value locked in DeFi was roughly a quarter of what it is now, at $276 million.
As it celebrates the milestone, some in the Ethereum community have pointed to the role played by the Bitcoin ( BTC ) lightning network, which accounts for 1.7% of the value ( $8.5 million ) — making it into the top ten digital assets used for DeFi contracts and applications .
But how can YOU benefit from DeFi?
Decentralized finance could make investing a more universal phenomenon, especially for those that don’t have access to the modern financial system.
By combining apps with blockchain technology – specifically through public blockchains such as Bitcoin or Ethereum – decentralized finance makes it possible to get around some of the barriers that are created by more traditional systems.
Here are some of the innovations that are making this possible:
Smart contracts could automate transactions and remove intermediaries, making investing cheaper, faster, and more accessible.
Fractional investing could allow partial or shared ownership of financial assets by using tokenization. This would make expensive stocks like Amazon ($1,800 per share) available to a much wider segment of the population.
Location independent investing is possible through smartphones. This would make it possible for people in remote parts of the developing world to invest, even without access to nearby financial institutions or local markets.
Keeping cash is useful but it doesn’t grow on its own, we know the struggles of a beginner; If you have some spare money, would it be more feasible to put it in the bank to collect the interest or invest it in the crypto market?
So here’s a comparison example of crypto interest account vs traditional banking interest
You can see the vast difference between the interest rate in crypto and traditional banks. In traditional banking interest, you will only get back 0.25% - 2% but in the crypto market, you can easily get back 3% or even 10% up to a year!