the DeFi revolution

bitcoin & austrian economics

“The gold standard under present conditions is the only standard which makes the determination of the purchasing power of money independent of the changing ideas of political parties, governments, and pressure groups,”

Ludwig von Mises

https://twitter.com/RD_btc/status/1308757209598365698 

bitcoin maximalists issues

• maximalisation is a driver (Schumpeter, 1942), but not the optimal state for an ecosystem (Kenneth Arrow, 1962).
  > a monopoly tends to stifle innovation and to increase prices (economics)
  > diversity & interconnectivity are that what makes any ecosystem resilient (nature, complexity theory)
• specialised crypto economies seem logical

Interesting talk: Bernard Lietaer TEDx 2009: https://youtu.be/nORI8r3JIyw
paper Kenneth Arrow "Economic Welfare and the Allocation of Resources for Invention", 1962

in a real free and open economy keynesian and austrian systems are both available

keynes

hayek

decentralized finance aims to create a financial system that’s open to everyone and minimizes one’s need to trust and rely on central authorities.

1. not money, but a financial system
2. no central authority, but decentralised communities
3. not permissioned, but open to anyone

does defi have a purpose?

defi enables anyone to take charge of their financial well-being

anyone?

noobs?

rich people?

poor people?

professional bankers?

fund managers?

crypto

exploring

risky

volatile

functional

trading & investing

speculation

defi

predictable

old concepts, new form

roi driven (yield farming)

please help to complete the list!

wealth manager

diversification options

• projects
• APY (% year)
• tech stack / blockchain

• no third party risk
• no regulation (unreliable government risk)

so what are we looking at?

dusk or dawn?

hype or start?

https://www.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization-2020/

$10,9 trillion

$6,6 trillion

$35.2 trillion

One
Qua
Drillion

https://defipulse.com/blog/what-is-defi/

further reading

thank you