Seasoned analyst and investor Qiao Wang, cofounder of Messari, has shared his opinion about next two stages of DeFi and Bitcoin (BTC) adoption.
Two milestones for Bitcoin (BTC) and DeFi
According to Mr. Wang, right now decentralized financial protocols (DeFis) are in the first stage of their progress. This will last for the next 2-5 years. The segment will be saturated with “casinos, games and speculative products.”
This paradigm looks to Mr. Wang similar to Bitcoin’s. While in the first stage of adoption, the crypto king had been a mostly speculative asset, it has now begun its transition to phase two.
The next stage of Bitcoin (BTC) progress is turning it into an “emerging store of value.” Thus, the second stage of progress for both DeFi and Bitcoin (BTC) will be associated with real-world systems integration.
Integration instead of replacement
Meanwhile, Mr. Wang debunks the narrative of DeFi maximalists who are certain that decentralized products will completely replace their centralized predecessors.
Also, DeFi will not be a “parallel financial system” coexisting with classic banking products. Central banks and private banking entities will introduce their own DeFi-focused projects.
Something similar occurred with major “old” media companies. Hand-in-hand with the adoption of the internet, media outlets just moved their businesses to the internet.
At the end of the day, the prefix “De” will be removed from DeFi and “finance” will be used to indicate single characteristics for new integral centralized and decentralized institutions.