Joey Krug, co-chief investment officer of Pantera Capital, an investment company focusing on blockchain, said in the latest monthly newsletter that he is "99.9% convinced that DeFi is the future of finance".
In his article, he talked about the GameStop incident that sensationalized Wall Street in the past few weeks, and explained how all kinds of problems will be overcome by DeFi.
He said, "The greatness of DeFi is that it is global, the cost is relatively low (once the expansion of Ethereum is successful), there are few intermediaries, it is transparent and fair to everyone, and the transaction is settlement. It got rid of the manipulated system and replaced it with a shared public infrastructure that can't be manipulated. No broker can overweight collateral requirements because there is no broker. "
He also stressed that "clearing house is just a smart contract. Because everything is automated, transactions will either happen or not happen through smart contracts. There is no need to wait for 2 days, only 30 seconds. Once your deal is confirmed in Ethereum, it will be finalized, that's all. And because these systems are global, anyone can access them anywhere in the world. "
He also explained how he confirmed that DeFi is the future of finance. He said, "When you use DeFi, you will realize that the financial industry will never go backwards. The moment when I am sure that this is the future direction is in 2020. Until last year, I was 99.9% convinced that DeFi is the future of finance. "
He mentioned that in 2020, by decentralizing exchanges and over-the-counter trading platforms, he can easily convert one encrypted asset into another.