Decentralized Finance Or DeFi is the buzzword for the upcoming year. It is predicted that it will outshine the traditional sectors of investments as well as the methods associated with them. After all, the popular cryptocurrency and NFT, all fall under DeFi. What’s more, is that DeFi allows individual investors to have all the control over their wealth. There is no middle man involved at all. Yet, with every silver lining, there’s a grey cloud that’s about to rain.
DeFi in 2022
According to experts, there will be a lot of DeFi hacks, beginner mistakes, and exchange outages as people begin to shift to DeFi. This alternative method of investment isn’t quite secured as of now by traditional bodies that regulate finance. The global regulation of DeFi is still a couple of years away. Thus, it’s likely that there will be a lot of security breaches and exchange outages. More and more people are moving to the DeFi due to Bitcoin and NFTs. The world of decentralized finance has already picked up the pace, and it’s not going to slow down. What it needs is support from the government. This support shouldn’t be an attempt to control the freedom that DeFi gives to the investor. The regulation policies should take into account the actual purpose of DeFi to provide more freedom to the individual investor.
In 2022, the security aspect of DeFi will definitely be tested as there are possibilities of hack attacks and whatnot. But only time will tell how everything pans out.