Why Blockstack’s Co-Founder Muneeb Ali Sees Bitcoin Taking the DeFi Industry By Storm

2020-7-22 17:11

With much excitement surrounding the altcoin’s season fueled by the exploding DeFi activity, crypto investors and enthusiasts are speculating that the combination of BTC and ETH will be the ultimate future of decentralized finance.

According to Muneeb Ali, Bitcoin is the asset people should “hold for collateral” and earn interest on since 2% of total BTC’s market cap moving to “hold and earn” would be greater than total current DeFi market cap. He said.

“Waiting for true DeFI with Bitcoin. That’s the asset you want to hold for collateral and earn interest on. 2% of bitcoins moving to this would be larger than current DeFi market cap.”

Agreeing with his sentiments, crypto investor @lemiscate replied that while BTC missed the chance to capitalize on true DeFi before, now is the right time. He wrote:

“Bitcoin missed the opportunity years ago. Now ETH is a BTC black hole and the future usage of bitcoin is on Ethereum. So now “if you don’t get it I don’t have time to try to convince you.”

BTC big on DeFi: It’s Coming?

The first week of July saw DeFi volume rise by $4.5 billion to reach $12 Billion with Dapps on Ethereum dominating the space at 82% of the market cap. Other outstanding Dapps ecosystems include TRON, EOS, WAX, and Thundercore.

The data from DappRadar stated:

“Ethereum stands as the most significant blockchain even given the gas price jump. The value of blockchain grew by $4.5 billion in Q2 2020 if compared to Q1 2020.”

In response to his tweet, users highlighted some of the best existing and upcoming Dapps that will boost BTC lending activity, including top Dapps on Ethereum.

First comment referenced moving BTC to Ethereum.

“You can already do that via the @renprotocol VM to trustlessly get Bitcoin on #Ethereum where the DeFi ecosystem is already growing exponentially. You can even insure your smart contract with @NexusMutual. The open minded bitcoin folk are already doing this.”

Is DeFi possible under PoW Algorithms?

While arguing that transaction fees would skyrocket as is currently happening with Ethereum gas prices, a user replied to Muneed that bitcoin’s DeFi would be too expensive and therefore impossible.

“DeFi is only possible under PoS algorithms.”

However, according to Muneeb, that could be easily solved with bridging with DeFi Smart contracts.

“DeFi smart contracts can be connected to the BTC chain but not operate directly on the main chain.”

Meanwhile, yesterday’s Ethereum announcement of their final testnet, which paves way for Phase 0 launch in Q4 2020, will open up staking for millions of investors.

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